Investing In Bharat 22 Etf: A Comprehensive Guide

The Bharat 22 ETF is an exchange-traded fund (ETF) managed by ICICI Prudential AMC. The fund's holdings are mostly in Large Cap stocks and debt instruments, indicating a conservative investment strategy. The investment objective of the scheme is to closely correspond to the total returns of the underlying index, which is the S&P BSE Bharat 22 Index. This index measures the performance of select companies disinvested by the Central Government of India as part of its disinvestment program. The fund has no assurance or guarantee of achieving its investment objective, and its performance may differ from the underlying index due to tracking errors. The Bharat 22 ETF has a very high risk, with investments in domestic equities across Large Cap, Mid Cap, and Small Cap stocks.

Bharat 22 ETF fund investment objective

The Bharat 22 ETF fund is an exchange-traded fund (ETF) offered by ICICI Prudential Mutual Fund. ETFs are a type of investment fund that holds a collection of stocks or bonds and is traded on an exchange. The Bharat 22 ETF fund's investment objective is to closely mirror the performance of the underlying index, the S&P BSE Bharat 22 Index, by investing in the same constituents and proportions as the index. This is a passive investment strategy, and the fund aims to provide returns that correspond to the total returns of the underlying index.

The fund's holdings are primarily in Large Cap stocks and debt instruments, indicating a conservative investment strategy. However, it is important to note that the fund has a very high risk associated with it, according to SEBI's Riskometer. This means there is a high possibility of negative returns on investments.

The Bharat 22 ETF fund provides investors with exposure to a diverse range of sectors and companies. The top sectors represented in the fund include power transmission, oil exploration and production, and banking. The fund's performance may differ from the underlying index due to tracking errors, and there is no guarantee that the investment objective will be achieved.

The minimum investment amount for the Bharat 22 ETF fund is ₹1000, and investors can choose to invest through a Systematic Investment Plan (SIP) or a lump sum investment. It is important for investors to carefully read the scheme-related documents and consider the risks before investing.

Bharat 22 ETF fund performance

The Bharat 22 ETF fund is managed by ICICI Prudential Mutual Fund. The fund's investment objective is to invest in the constituents of the underlying index in the same proportion and provide returns that closely correspond to the total returns of the underlying index. The fund's performance may differ from that of the underlying index due to tracking errors.

The Bharat 22 ETF fund's returns are currently better than the category average. As of 17th September 2024, the Net Asset Value (NAV) was ₹116.3959, with a change of -0.26% from the previous day. The fund size is ₹20550.1 Cr, which is 1.95% of the investment in the category. The expense ratio is 0.07%, lower than the category average of 0.48%.

The fund has 99.62% investment in domestic equities, with 82.74% in Large Cap stocks, 11.01% in Mid Cap stocks, and 5.87% in Small Cap stocks. The standard deviation value indicates that the fund returns have been volatile in the past three years. The beta value suggests that the fund performance has been more volatile compared to similar funds in the market. The Sharpe ratio indicates that the fund has taken on more risk to generate its returns.

Overall, the Bharat 22 ETF fund has a conservative investment strategy with a focus on Large Cap stocks and debt instruments. The fund's performance has been better than the category average, and it has a very high risk as per SEBI's Riskometer.

Bharat 22 ETF fund risk

The Bharat 22 ETF fund is considered to have a "very high risk" rating as per SEBI's Riskometer. This is due to the potential for negative returns on your investment. The fund's holdings are mostly in Large Cap stocks and debt instruments, indicating a conservative investment strategy. The fund has a high investment in domestic equities, with 82.74% in Large Cap stocks, 11.01% in Mid Cap stocks, and 5.87% in Small Cap stocks.

The Bharat 22 ETF fund aims to invest in the constituents of the underlying index in the same proportion, providing returns that closely correspond to the total returns of the underlying index. However, the performance of the fund may differ from the underlying index due to tracking errors. There is no assurance or guarantee that the investment objective of the fund will be achieved.

The fund's portfolio turnover ratio is 11.00%, which is lower than the category average of 23.53%. This indicates that the fund manager updates the portfolio less frequently than peers. The fund has a Standard Deviation value that gives an idea of how volatile the fund returns have been in the past 3 years. A lower value indicates more predictable performance. The Beta value also provides information on the volatility of the fund's performance compared to similar funds in the market.

When investing in mutual funds such as the Bharat 22 ETF, it is important to consider the risks involved. These risks include the potential for negative returns, volatility in fund performance, and the possibility that the investment objective may not be achieved. It is always recommended to carefully evaluate the risks and diversify your investments to minimise potential losses.

Bharat 22 ETF fund fees

The Bharat 22 ETF fund is managed by ICICI Prudential Mutual Fund. The fund's Net Asset Value (NAV) is the unit price for the fund, which is declared once per day, generally at the end of the day. The NAV is used to determine the number of units allocated to each investor based on the amount they invest.

The Bharat 22 ETF fund has an expense ratio of 0.07%, which is lower than the category average of 0.48-0.49%. The expense ratio represents the annual fees that the fund charges investors to manage their money. While investors are not required to pay this fee explicitly, it is deducted from the NAV on a daily basis. For example, if an investor has invested 10,000 rupees and the expense ratio is 2%, they would have paid 200 rupees in fees.

The fund has a portfolio turnover ratio of 11.00%, which is lower than the category average of 23.53%. The portfolio turnover ratio indicates how frequently the fund manager updates the portfolio. In this case, the fund manager of the Bharat 22 ETF fund has updated the portfolio less frequently than peers in the last year.

The Bharat 22 ETF fund offers both Regular and Direct options, which are the same except for the commission paid to the mutual fund broker/distributor. Investors do not need to pay any additional fees to purchase either option, but the Regular option has a higher expense ratio than the Direct option due to the commission paid to the broker/distributor. As a result, the Direct option leads to higher returns for investors due to the lower expense ratio.

Bharat 22 ETF fund portfolio

The Bharat 22 ETF fund portfolio is designed to follow a conservative investment strategy, with most holdings in Large Cap stocks and debt instruments. The fund's returns are currently better than the category average, but it is rated as having a very high risk.

The fund's portfolio includes holdings in the following:

• Larsen & Toubro Ltd.
• National Thermal Power Corporation Ltd.
• Power Grid Corporation of India Ltd.
• Oil & Natural Gas Corporation Ltd.
• Bharat Electronics Ltd.
• National Aluminium Co. Ltd.
• Bharat Petroleum Corporation Ltd.
• Indian Oil Corporation Ltd.
• Power Finance Corporation Ltd.
• Rural Electrification Corporation Limited
• Engineers India Ltd.

The fund's objective is to invest in the constituents of the underlying index in the same proportion, aiming to provide returns that closely correspond to the total returns of the underlying index. The fund is managed by ICICI Prudential Mutual Fund.

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