ICICI Prudential Mutual Fund managed Bharat 22 ETF (Exchange Traded Fund) will be open for subscription only for a day on February 14, 2019. The units are being offered through the Additional Offering Period (AOP) for which one may invest through cheques or demand drafts, RTGS and or by NEFT till 8 p.m today. As per the website of the fund house, ASBA facility is not available.
Allotment will be made on a proportionate basis and not on a first-come first-served basis. For all successful applications, the units will be allotted within 5 working days from the closure of the AOP. The units will be listed on BSE and NSE within 5 working days from the allotment date. Post listing of these units, trading happens on the exchange similar to any other listed securities.
Bharat 22 ETF is a passively managed mutual fund scheme as its portfolio closely maps the Bharat 22 Index comprising primarily the shares of government owned companies. The minimum investment amount is Rs 5,000 and there is no entry or exit load in the scheme. During the AOP, there will be a discount of 5 percent for all investor categories and will be available to investors only if they subscribe under this AOP, and not if they purchase the existing units of the scheme already listed on the exchanges.
How to apply for Bharat 22 ETF
Those who want to invest may apply directly with the ICICI Prudential Mutual Fund either offline or online through their website.
Additionally, one may invest through CAMS and platforms of NSE or BSE stock exchanges. If you have a demat account and trading account with a broking firm with whom you have a regular business relationship, then you can go through the BSE Star platform to make investments. In case it is a broker other than your regular one, then you need to use a physical form and also supply the documents like , KYC, DP Master, FATCA Form and the cheque, says Dr. Joseph Thomas, Head Research- Emkay Wealth Management.
If you have a demat account with any registered intermediaries such as ICICI Direct, Axis Direct or HDFC Securities, you may still find it easier to apply. Feroze Azeez, Deputy CEO, Anand Rathi Wealth Services shows you the way, You can invest in the Bharat 22 ETF by a demat or mutual fund account. You can visit IPO or NFO section of your account and identify the Bharat ETF Trance 3 link and indicate the amount and submit the same.
The list of stocks of Bharat 22 Index includes companies such as ONGC, IOC, SBI, BPCL, Coal India and Nalco. The other central public sector enterprises on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India. Only three public sector banks – SBI, Indian Bank and Bank of Baroda – figure in the Bharat 22 index.
Before you proceed to invest, understand the structure and the constituents of the Bharat 22 ETF and then decide based on your risk profile and need.