6 essentials every investment beginner should know

All the above mentioned are important points about CPSE ETF to consider. What you need is time to invest in research about mutual funds, SIP returns, ETF, and CPSE ETF. Understanding the Central Public Sector Enterprises Exchange Traded Fund and its characteristics will help gain clear knowledge and deeper insights about the fund. It will also help you make good investing decisions. 

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|#|_#|{"ops":[{"insert":{"image":"https://fsquizmast.blob.core.windows.net/images/20200806/skshaheen-2wN4miboAQA.jpg"}},{"insert":"nn"},{"attributes":{"color":"#0e101a"},"insert":"So, you are looking for investments in PSU (Public sector undertaking). CPSE ETF (Central Public Sector Enterprises Exchange Traded Fund) is an open-ended ETF with no lock-in made up of CPSE stocks. It tracks the performance of the Nifty CPSE Index. CPSE ETF can be bought and sold on a stock market and are pure equity investments. It was launched in March 2014. If you are interested in CPSE ETF, here are important points to consider-"},{"insert":"nnCPSE ETF offers an opportunity to invest in a basket of 11 PSE stocks across the giant, large- and mid-cap segments (‘Maharatnas’, ‘Navratnas’, and ‘Miniratnas’ of CPSE). At present, the ETF portfolio is concentrated in the energy sector with oil, power, and petroleum products constituting more than 60percent % of the portfolio and topmost five stocks constituting 82.5percent of the portfolio:"},{"attributes":{"list":"ordered"},"insert":"n"},{"insert":"Bharat Electronics"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"NTPC"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"Coal India"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"NBCC India"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"IOC"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"ONGC "},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"NLC India"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"PFC"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"Oil India"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"SJVN"},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"insert":"REC "},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"attributes":{"color":"#0e101a"},"insert":" "},{"insert":"nCPSE ETF is managed by Nippon Life India Asset Management, which was earlier known as Reliance Nippon Life Asset Management. "},{"attributes":{"list":"ordered"},"insert":"n"},{"insert":"With CPSE-ETF, the government can pare smaller 2to3% stakes in a giant basket of companies. This means happiness for everyone, as the state gets its money. On the other hand, institutions have a piece of solid public sector companies and happy worker unions as it lowers the risk of working for private promoters. "},{"attributes":{"list":"ordered"},"insert":"n"},{"insert":"n"},{"attributes":{"color":"#0e101a","bold":true},"insert":"CPSE ETF units are issued at a discount. CPSE ETF doesn’t guarantee outperformance. "},{"insert":"nn Though CPSE ETF is protected from risk as the fund passively tracks the Nifty CPSE Index. However, the Nifty CPSE index is custom-built, and the replacement of stock does not happen automatically. So, it is essential to understand that the ETF does not assure outperformance."},{"attributes":{"list":"ordered"},"insert":"n"},{"insert":"How to invest- The FFO is open for all categories of investors including "},{"attributes":{"list":"ordered"},"insert":"n"},{"insert":"FPIs (foreign portfolio investor), retail investors, anchor investors, institutional investors, retirement funds, and non-institutional investors."},{"attributes":{"indent":1,"list":"bullet"},"insert":"n"},{"attributes":{"color":"#0e101a"},"insert":"With several multiple trading platforms, it has now become easy to invest in CPSE ETF FFO. Like most ETFs, one can buy the CPSE ETF using a demat trading account. It just needs to log on to the trading platform and locate these ETFs and invest in buy according to the prevailing amount. One can also buy from Reliance Mutual Fund. The CPSE ETF has provided attractive returns so far. However, it is essential to understand that it is an equity investment. It can be subject to market risks — risks in the energy sector in particular."},{"insert":"nn"},{"attributes":{"color":"#0e101a"},"insert":"All the above mentioned are important points about CPSE ETF to consider. What you need is time to invest in research about mutual funds, "},{"attributes":{"bold":true,"color":"#0e101a","link":"https://www.nipponindiamf.com/sip"},"insert":"SIP"},{"attributes":{"color":"#0e101a"},"insert":" returns, ETF, and CPSE ETF. Understanding the Central Public Sector Enterprises Exchange Traded Fund and its characteristics will help gain clear knowledge and deeper insights about the fund. It will also help you make good investing decisions. "},{"insert":"n"},{"attributes":{"color":"#0e101a"},"insert":"So, what are you waiting for? Get started