What is the risk involved in investing CPSE.? Which kind of investors can invest in this ETF?

General
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CPSE ETP is Central Public Sector Enterprises (CPSE) ETF traded from 19th march to 21 march.

i. It is a concentrated fund with just 10 companies. Moreover, as per the weightage, more than 60% investment would be in only 3 companies
ii. All these companies experience Govt. control wherein the political considerations have many times overridden the economic interests of these enterprises.

Due to policy paralysis and politically-motivated decisions in the last few years, PSU sector is today a beaten down sector.

investors with high risk-appetite can possibly consider investing in CPSE ETF NFO

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Adding on to what Shiva has already stated, what you need to also note is that today markets are at all time highs, and investing into a beaten down or underperforming sector may not be a very smart thing to do. But yeah, if tomorrow the new government starts taking proactive steps to help these companies, it will be a really good idea getting into this ETF.

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