Bharat 22 ETF: Overview

Bharat 22 ETF is an exchange traded fund (ETF) which is scheduled for launch in November 2017. This new ETF will closely track the performance of the Bharat 22 Index, which comprises 22 leading publicly traded domestic companies. The Bharat 22 ETF has a well diversified portfolio that includes six core sectors, including industrials, finance, utilities, energy, FMCG and basic materials, and offers good investment opportunity. This ETF is being managed by ICICI Prudential AMC, comprises select companies from the private sector having an exposure to the extent of 39 per cent while the rest are public sector firms.

About Exchange Traded Funds

Exchange Traded Funds are defined as marketable securities that track a specific commodity, bonds, index or a combination of assets such as index fund. ETFs can be traded on stock markets similar to shares thus ETF units witness price change in real time. On the other hand, unlike shares which represent investment in a specific company, an index ETF such as Bharat 22 Index ETF offers superior diversification. In many ways, an ETF combines the real time trading benefits of shares with the diversification benefit of mutual funds. Some of the key trading features supported by an ETF include:

• Provides intra-day trading option
• Allows limit order and stop order trades
• May be used as collateral similar to securities (loan against securities)
• Allows trades using margin money

Expected Equity Holdings of Bharat 22 ETF

The following are the expected equity holdings of the Bharat 22 ETF based on the weights assigned to individual securities featured on the Bharat 22 Index*.

*The above data is based on current information of the Bharat 22 Index as provided by Asia Index Pvt. Ltd. on 31^st July 2017. The actual allocation of individual securities of the Bharat 22 Index ETF may be different based on market conditions and other fund-specific considerations.

Issue Details

Scheme name:  BHARAT 22 ETF

Investment Manager: ICICI Prudential Asset Management Company Limited

Face Value: Rs. 10

Minimum Application Amount (During NFO): Anchor Investors: RFs and QIBs – Rs. 10 crore and in multiples of Rs. 1 thereafter

Non-Anchor Investors: Retail – Rs. 5,000 and in multiples of Rs. 1 up to Rs. 2 lakh

Non Retail: Rs. 2, 00,001 and in multiples of Rs. 1 thereafter

ˆRFs, QIBs & NIIs

Fund manager: Mr. Kayzad Eghlim

Entry / Exit load: Nil

Liquidity: To be listed on BSE and NSE

Benchmark: S&P BSE Bharat 22 Index

Allocation: Anchor Investors: 25%

Non-Anchor Investors: RII – 25% RFs – 25% QIBs and NIIs – 25%

Download form

Download Sample Application Form : Bharat22ETF-Application Form-ARN-20669