Retail individual investors can invest a minimum of Rs5,000 in the NFO of CPSE ETF, that would track the CPSE Index
CPSE ETF, a new fund offer (NFO) scheme based on central public sector enterprises (CPSE) Index, would open on 18th March for anchor investors and the next day for non-anchor investors.
According to Goldman Sachs Asset Management (India) Pvt Ltd, CPSE ETF’s new fund offer (NFO) is an open-ended index exchange traded scheme that would track the CPSE index.
“CPSE ETF is a unique opportunity for investors to invest in 10 Maharatnas, Navratnas and Miniratnas at a discount of 5% on the ‘Reference Market Price’ of the underlying shares of CPSE Index,” Goldman Sachs said in a release.
Retail individual investors can invest a minimum of Rs5,000 and in multiples of Re1 thereafter up to Rs2 lakh. Non-institutional investors/ QIBs can invest a minimum of Rs2 lakh and in multiples of Re1 thereafter. Maximum amount to be raised during the NFO will be Rs3,000 crore subjected to maximum of 3% of the paid up share capital of each of the constituents of the CPSE Index. The entry and exit load is nil. CPSE ETF offers tax benefits as the scheme is in compliance with the provisions of Rajiv Gandhi Equity Savings Scheme, 2013 (RGESS).
The CPSE Index constituents are as follows: Oil & Natural Gas Corporation Ltd (ONGC), GAIL (India) Ltd, Coal India Ltd, Rural Electrification Corporation Ltd (REC), Oil India Ltd, Indian Oil Corporation Ltd (IOC), Power Finance Corporation Ltd (PFC), Container Corporation of India Ltd (ConCor), Bharat Electronics Ltd (BEL) and Engineers India Ltd.