Include Bharat-22 ETF in your satellite portfolio

Investors can either book profits in this ETF after their targeted return is achieved, or can use it as a defensive bet

The new fund offer (NFO) of Bharat-22 Exchange Traded Fund (ETF) will open for subscription by retail investors on November 15(the first day, November 14, is reserved for anchor investors). The latest offering from the government is more diversified than the Central Public Sector Enterprise (CPSE) ETF, which was heavy on the energy sector.

The new ETF has 22 companies spread across six sectors compared to just 10 stocks spread across five sectors in the CPSE ETF. “If you look at price-to-earnings, price-to-book and dividend yield, the valuations of these companies are more attractive compared to the S&P BSE Sensex,”