CPSE ETF FFO Opens on 18 Jan 2017

The Government of India is coming up with a 'Further Fund Offer (FFO)' of CPSE Exchange Traded Fund (ETF). It provides an excellent opportunity for you to invest in a basket of quality PSUs with strong fundamentals. The CPSE ETF has delivered an absolute return of 33% since its launch on April 4, 2014 against Nifty 50, which delivered a return of 22% during the same period (as on January 04, 2017).

Investment rationale for Further Fund Offer:

CPSE Exchange Traded Fund (CPSE ETF) provides investors an opportunity to invest in a basket of 10 Maharatnas & Navratnas with strong fundamentals, which are market leaders in their area of operations. These companies are high dividend yielding companies which are available at attractive market valuations. The current weighted average dividend yield of the CPSE index is around 4.07%, which is significantly higher than Nifty 50's dividend yield of 1.35% (as on December 30, 2016). Investors will be able to diversify exposure across blue-chip Maharatnas & Navratnas CPSE stocks through a single instrument. The favourable policy outlook amid a reform oriented government augurs well for these companies. The Government has offered a 5% discount to all categories of investors which makes it a compelling case to invest in the CPSE ETF.