What is Exchange Traded Fund (ETF) ? What is ETF ?

Exchange Traded Funds (ETF) Forum - Discussion Board Online
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Joined: Thu Aug 10, 2017 4:55 pm

Wed Nov 15, 2017 8:25 am

Now a Days i heard lot about ETF Funds. But want to know what is ETF or What is Exchange Traded Funds means ? So please share your information regarding this please...
Posts: 5
Joined: Thu Aug 10, 2017 7:48 am

Wed Nov 15, 2017 8:38 am

The government of India, in the Budget speech of 2017, announced its plan to achieve a divestment target of Rs 72,500 crore in the FY 2017-18. Bharat 22 ETF has been set up as one of its vehicle to achieve the target. It is an open-ended Exchange Traded Fund which will invest in similar composition and weightages as they appear in Bharat 22 Index.

B22 ETF will hold shares of 22 companies. Rather than divesting its stake individually, it has chosen the ETF route. The money in B22 ETF will be transferred to the government and an equivalent value of shares of these 22 companies will be transferred to the fund. The S&P BSE Bharat 22 index has been specially created to track the basket’s performance. The index will comprise shares of the 22 companies in B22 ETF. No individual stock in the index—and thereby B22 ETF—will be more than 15% of the index and no sector more than 20%.

This ETF is a part of government of India's overall disinvestment program, announced earlier by the Department of Investment and Public Asset Management. Through the ETF, ICICI Prudential AMC proposed to raise an initial amount of Rs 8,000 crore plus additional amount subject to approval from the Government of India.
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