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


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


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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