Can you please tell the advantages of investing in ETF?
How it’s different from mutual fund and can a monthly sip exists for ETF too?
this is not FNO, its is NFO (New Fund Offer)
Yep, it’s just like an IPO. Check this post to know more about the allotment process.
The funds will be credited to your bank account in case of no or partial allotment.
Check this post
An ETF is just like a stock, there is no SIP option but you can buy ETF units anytime you want.
I’m new to this ETF thing.
I have a silly question…is it the same like an IPO where it may listed at a premium or discount?
Like Reliance nippon listed at a higher price and new India assurance listed at a discount of some 3% than the allocation price.
Yep, the difference here is the price isn’t specified in advance. The unit price will be calculated based on the average of full day volume weighted average price on BSE Ltd during the Non-Anchor Investor NFO Period for each of the underlying index constituents. This post simplifies this calculation.
Post listing an ETF is just like a stock.
Thanks dear! Much appreciated
Can we buy at the 3% discounted price and later use the redemption option to sell the units back to ICICI prudential at the NAV?
Will it matter if I purchase the ETF on the 15th or 17th Morning? Will the rate differ in the next three days?
OK. So I understand the basic concept of ETF, more specifically for Bharat 22 ETF it means that the entire corpus of fund is invested in the specific 22 PSU stocks with the given percentage. My question is what happens to the dividends? Among the companies mentioned, I know that Coal India, REC, PFC etc give dividends annually. Would that money be reinvested? Or does that not apply to ETF? Or do we get the dividend amount?
In the US, ETFs typically consolidate all dividends and pay out quarterly. For Bharat 22, after reading the scheme document - they have the option to reinvest the dividend into the fund to reduce/remove the implicit tracking error in the ETF. If they have surplus funds from dividends and the trustee decides to distribute they’ll do that.
CPSE hasn’t paid out any dividend so far.
Bharat 22 ETF anchor book subscribed 6 times
Bharat 22 Exchange Traded Fund (ETF), comprising 22 companies, on Tuesday attracted robust bids with the portion reserved for anchor investors getting subscribed six times to the tune of Rs 12,000 crore on the opening day.
As much as 25 percent of the total issue size, or Rs 2,000 crore, was reserved for anchor investors who put in bids worth about Rs 12,000 crore, ICICI Prudential MF said. The issue will open for subscription for retail investors on Wednesday and will remain open till November 17.
you can apply online as well as offline.
follow below link. it will explain how to apply.
I just applied for the NFO. Is there any chances Of getting the order rejected? Also can I view the order?
Will be rejected only if you don’t have sufficient funds. The order placement is just like Gold Binds, only click apply the order is accepted, no tracking page as such. You will an email/SMS from CDSL if and when the units are allotted.
Hi, I was looking at the line “Interest at the rate of 0.05% per day will be charged if the account goes into a debit subsequent to the purchase of the ETF.” The amount will be deducted from my equity balance so why is the interest rate is all about, could you please explain?
I have applied for the Bharat-22 NFO by clicking the apply now button in the email received. But I havent received any email confirming the same.
How do I check this?
I have not received email regarding the ETF
This will be applicable only in case you don’t have enough funds in your account to fund the application. Interest will be applicable on the shortfall amount.