After going through a tough phase in the last few years, ETFs Currently ranked No. 1 among its large cap competitors.
Bharat 22 ETF This has outpaced the average return of large caps by over 40%. Quant Focused Fund, which comes second on the list, has given around 78 per cent returns in a year.
For the latecomers, Bharat 22 ETF is managed by ICICI Prudential Mutual Fund. It invests in 19 public sector and three private sector companies.
The scheme saw its worst run when the PSUs were not in favor of stocks. The scheme offered -44% returns in the period March 2019 to March 2020.
However, the tables have turned. 2020 and 2021 have been really good years for Bharat 22 ETF. The fund is ahead of all active and passively managed schemes in the large cap category and that too by a huge margin.
“Bharat 22 ETF was launched by the Government of India to meet its disinvestment targets in PSUs. This ETF comprises 19 PSUs and 3 private sector companies. Initially, the ETF did not have a good start. However, the government The recent push by Himanshu Srivastava, Associate Director – Manager Research, Morningstar India, says, “India towards its disinvestment plans has helped it deliver decent returns. Positive sentiments in the market ensure a broad-based rally.”
The fund invests mostly in energy, financial and FMCG sectors. Most of the stocks in its portfolio are large cap. Here’s a look at its short term performance:
“We believe that the ICICI Prudential Managed Bharat 22 ETF offers investors an attractive long-term Investment Chintan Hariya, Head Products & Strategy, ICICI Prudential Mutual Fund said, “An opportunity to participate in India’s growth story.”
“The ETF, a 22-stock portfolio composed of capex-driven industrial and PSUs, is an excellent opportunity to participate in some of the best companies with high future growth potential. Most of the names in the portfolio are significant players in their respective sectors,” said Hariya. .
Analysts believe that PSU stocks are still undervalued in the market and there is room for better performance. However, mutual fund advisors are of the view that retail investors should remain cautious during this period. Investment In a PSU-heavy portfolio.
A mutual fund advisor said, “HNIs and investors who want to take strategic decisions on PSUs can use Bharat 22 ETF. Investors with small portfolio can miss it.”