The value of an ETF unit will rise or fall in line with the value of the 22 stocks. There is no cap on funds that can be raised through the ETF, said Niraj Gupta, secretary, Department of Investment and Public Asset Management (DIPAM). SBI, Indian Bank, Bank of Baroda, Axis Bank, PFC and REC belong to the financial sector; Nalco to minerals; ITC to FMCG; and BEL, EIL and NBCC to industrials. He pointed out that ETF assets have grown fivefold in the past three years to nearly Rs 54,000 crore fromRs 11,000 crore in FY11. The Employees’ Provident Fund Organisation has preferred the ETF route for investing in equities.

Source: Economic Times August 04, 2017 18:45 UTC