Should you invest in Follow-on Fund Offer of Bharat-22 ETF?

“Retail investors to get a 2.5% discount on the NAV, low expense ratio of just 1 basis point and high dividend yield of 2.6% in comparison to the Sensex stocks which stands at 1.14%,”

What is Bharat 22 ETF?

The foundation of Bharat 22 ETF was laid by government in the Union Budget 2017 as a vehicle to achieve its divestment target. It's New Fund Offer (NFO) in November, 2017 was oversubscribed with 3.35 lakh applications, amounting to Rs 32,000 crore. It has now come up with a Further Fund Offer (FFO) to raise Rs 6,000 crore, plus any additional amount, subject to the Government's approval.

Bharat 22 ETF is an open-ended exchange traded fund which will invest in similar composition and weightages as they appear in Bharat 22 Index.





The FFO is open for subscription from June 20 to June 22, 2018 for retail investors. Applications to invest in Bharat 22 ETF through FFO can be submitted online as well as offline. Offline applications can be submitted to any of the service centre of ICICI Prudential AMC or CAMS. For online application, ICICI Prudential AMC website, IPRUTOUCH mobile app and other platforms like BSE Star MF, MF Utility, CAMSONLINE, etc. may be used.

You need to have a demat account to invest in ETFs. But for the benefit of retail investors without a demat account, the fund house has launched a Fund of Funds (FOF) scheme based on Bharat 22 ETF by the name of ICICI Prudential Bharat 22 FOF. The New Fund Offer (NFO) of ICICI Prudential Bharat 22 FOF will be open from June 19 to June 22, 2018.

Minimum and maximum application amount for retail investors is Rs 5,000 and Rs 2 lakh respectively.

SENSEX VS BHARAT 22 ETF Compartiosn