JainMatrix Investments

Central Public Sector Enterprises ETF – Invest

—

by

JainMatrix Investments
in

CPSE ETF NFO Update 04th April

  • The CPSE ETF offering was successful and oversubscribed as applications were for Rs 4,400 crore when the offer was limited to Rs 3,000 cr.
  • The ETF units were allocated to subscribers at a price of Rs 17.45.
  • NFO investors got allotment by a formula – investor who applied for more than 5000 units got a guaranteed allotment worth 5,000 units. The balance units were allotted to all applicants on a proportionate basis, as per reports.
  • Retail investors who applied for Rs 2 lakhs worth got refunded about Rs 45,700 and got about 8,800 units.
  • Trading of this ETF started on the exchange today and it appreciated by 10.9%.
  • So this Retail investor has gained Rs 16,700 from this NFO purchase already. This is a great start for investors !!
  • As mentioned in my initial report, investors need to hold on to this ETF for 1 year to gain the Loyalty units. In addition, holding for over one year allows for dividend benefits as well as taxation gains.

Good luck and happy investing.

JainMatrix Investments's avatarJainMatrix Investments

_____________________________________________________________________________

  • Report Date 21-Mar-2014
  • NFO Offer Period – 19-21st March 2014
  • Mutual Fund Nature – Large Cap PSUs ETF
  • Will launch at Rs 10 NAV
  • Advice: Buy

Here is a note on the Central Public Sector Enterprises – Exchange Traded Scheme – NFO.

Offer Description

  • Goldman Sachs is launching the CPSE ETF through a New Fund Offer (NFO)
  • CPSE Index will facilitate GoI’s (Govt of India) initiative to dis-invest some of its stake in CPSEs through the ETF route.
  • Ten leading PSUs’ will be included in this ETF at offer stage
  • Typically these are fairly well known high dividend, low capital gains but asset rich companies
  • Already in the first 3 days of Offer, the fund has collected Rs 2400 crore of the Rs 3000 cr targets.
  • Analysis of these ten PSUs as part of this ETF

CPSE analysis, JainMatrix Investments CPSE analysis, JainMatrix Investments

Note here: 1) Coal India price is taken from…

View original post 789 more words

Comments

Leave a comment