CPSE ETFs of biggest government companies open, should you invest money in this? – CPSE ETFs 7th tranche to open on 30 January 2020 What investors do all you need to know | Business – News in Hindi

new Delhi. The Exchange Traded Fund (ETF) of Central Public Sector Enterprises (CPSE) has opened up for investment. This is the 7th batch of this ETF. Experts say that those who invest in long-term equity mutual funds should stay away from it. Also the valuations are low and discounts are being offered. Such funds are focused. Hence there is more volatility in them. It has only 12 shares of which four companies Coal India, NTPC, ONGC and Power Grid have 79.5 per cent share. Due to this, there is a high risk of turmoil in it. Let us tell you that the first new fund offer of CPSE ETF was launched in March 2014. Then in January 2017, Rs 13,705 crore was raised through it. After this, it was offered in March 2017 and November 2018.

Let us tell you that through its earlier ETF, the government has raised Rs 50 thousand crore. 3 thousand crores in the first tranche introduced in March 2014, Rs 6 thousand crores in January 2017, Rs 2,500 crores in March 2017, 17 thousand crores in November 2018, 10 thousand crores in March 2019 and a total of 11,500 in July 2019 Crores were raised.

How much did the old CPSE ETF returnThe CPSE ETF has fallen by 6.53 per cent in the last one year while the BSE Sensex has given a return of 13.72 per cent during this period. Experts say that the fundamentals of investing in a safe PSU with low valuation and high dividend yield are still strong, but investors' experience with previous CPSE ETFs is not good.

In terms of valuation, the Nifty CPSE index is trading at 8.76 P / E while P / E of Nifty 50 is running at 28. Apart from this, the dividend yield of Nifty CPSE is 5.32 percent. At the same time, the dividend yield of Nifty 50 is running 1.24 percent.

Minimum investment of 5 thousand rupees

(1) Small investors can invest up to 5 thousand rupees. At the same time, this limit is Rs 2 lakh for non-institutional investors and qualified founder buyers. The minimum investment limit for Anchor Investors is Rs 10 crore.

(2) Every CPSE trunk comes with a discount, which is around 3-5 per cent for retail investors. Currently, investors will get a discount of 3 percent for this seventh tranche.

(3) The CPSE ETF consists of 12 public sector companies, most of which are energy and power sector companies.

(4) Their compound annual growth rates in the past one, three and five years till January 23 have been -6.36 per cent, -6.35 per cent and -2.59 per cent respectively. Companies like ONGC, NTPC, Coal India, Indian Oil, REC, PFC, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN. These companies have a weightage of up to 20 percent in the index.