It will facilitate the government to divest its stake in PSUs

Goldman Sachs Asset Management (India) has announced the launch of CPSE (Central Public Sector Enterprise) ETF new fund offer (NFO) which would open for retail investors on March 19. CPSE ETF, an open-ended Index Exchange Traded Scheme NFO, will open on March 18 for anchor investors. It would be listed on the exchanges in the form of an Exchange Traded Fund (ETF), which tracks the central public sector enterprises (CPSE) index.

Through this fund, investors can invest in 10 Maharatnas, Navratnas and Miniratnas at a discount of 5 per cent on the “Reference Market Price” of the underlying shares of CPSE Index, which will be offered to the CPSE ETF by the Government. The non-anchor investors’ NFO will close on March 21. The scheme reopens for continuous subscription and redemption on or before April 11, Goldman Sachs said.

The CPSE Index, comprising ONGC, GAIL (India), Coal India, REC, Oil India, IOC, PFC, CCL, BEL and EIL, is constructed to facilitate the government’s initiative to disinvest some of its stake in select CPSEs through the ETF route. Retail individual investors can invest a minimum of Rs.5,000 and in multiples of Re.1 thereafter up to Rs.200,000. The entry and exit load is nil.