Views of Mr. Mayuresh Joshi (Fund Manager, Angel Broking):
"The ETF - Bharat 22 is an interesting composition of mostly profit-making, dividend paying public sector companies and some shares of blue-chip companies like ITC, Larsen & Toubro, GAIL, ONGC, NALCO, BOB, Axis Bank held under the Special Undertaking of Unit Trust of India or SUUTI. The ETF is a diverse mix of companies within the energy, financials, FMCG and Utilities space and though some of the individual components within the ETF might be having some softness in reported numbers, the basket looks spread out across industries thus reducing a sector/stock risk.
ETFs are a relatively safer long term investment avenue as they can spread their risk across quality companies. Even fund managers of long-term term savings funds prefer ETFs, hence, there is no reason for individual investors to stay away from it.
The composition of Bharat 22 ETF is such that only large cap, dividend paying companies are available. There is a good chance that the government could offer a discount to retail investors like it did during the new fund offer and follow-on offer of CPSE ETF. Hence, Bharat 22 is a good investment option for individual investors who want to make a long-term investment and reap better returns from the stock market without buying shares directly."