Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) FFO

Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF) FFO is part of the government's larger disinvestment program that was launched by the Ministry of Finance in 2017. The CPSE ETF is a passive investment fund with no lock-in period that was created to help the Government of India in its initiative to dis-invest some of its stake in selected CPSEs through the innovative ETF route. The ETF is based on Nifty CPSE index and includes 11 listed Central Public Sector Enterprises.


The FFO is open for all category of investors including anchor investors, retail investors, retirement funds, institutional investors, non-institutional investors and foreign portfolio investor (FPIs).


Read more about Nifty CPSE Index

 

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Upcoming CPSE ETF FFO 6

Avail the opportunity to invest in the more diversified CPSE ETF

  • Another Opportunity to Invest in10 Ratnas of Government of India at 3% discount*!
  • Play on India growth story through investment in the large CPSE stocks at relatively better valuations compared to other broader indices.
  • Portfolio diversification through investment in blue-chip Maharatna, Navaratna & Miniratna CPSE stocks majority of which are which are sector leaders / near monopolies.
  • FFO 6 price advantage – Discount to all categories of investors.
  • Valuation and Dividend Yields: Reasonable P/E ratio and dividend yields compared to broader market index.
  • Relatively lower correlation of 0.62 & 0.67 for Nifty CPSE Index vis-à-vis Nifty 50 index (over 1 Year & 5 Years period ending 31st December, 2019), helping portfolio diversification. (Source: NSE)
  • Flexibility of trading on real time basis.
  • Low expense ratio i.e. 0.0095%.
  • Investors will be able to diversify exposure across a number of Public Sector companies through a single investment.


Proposed Category-wise Allocation:

  • 30% to Anchor Investors and balance 70% to Retail Individual
  • Investors and QIB (Retirement Funds): Includes Anchor Investorundersubscribed portion.
  • Residual portion (if any) from Retail Individual Investors andQIB (Retirement Funds) to be allocated to QIB (Other thanRetirement Funds) /NIIs.
 
Scheme Features For Anchor Investors For Non-Anchor Investors
For Non-Anchor Investors 30-Jan-2020 31-Jan-2020
FFO Closes on 30-Jan-2020 31-Jan-2020

 

Read more about FFO 5 Issue Details

History of CPSE FFO's

New Fund Offer (NFO) Further Fund Offer (FFO) Further Fund Offer 2 (FFO 2)
  • NFO was first launched in March 2014
  • NFO received overwhelming response; NFO collection was Rs.4,363 Crs, out of which Rs.1,363 Crs was refund to investors due to limited issue size of Rs.3,000 Crs
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 04th April 2014 on NSE & BSE
  
  • FFO was launched in January 2017
  • FFO received overwhelming response; FFO collection was Rs. 13,705 crs, out of which Rs.7,705 crs was refund to investors due to limited issue size of Rs.6,000 Crs
  • Participation across various categories of investors
  • FFO Units of CPSE ETF were listed on 31st January 2017 on NSE & BSE
  • FFO 2 was launched in March 2017
  • FFO 2 received overwhelming response; FFO 2 collection was Rs.10,083 crs, out of which Rs.7,583 crs was refund to investors due to the issue size limit of Rs.2,500 crs.
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 28th March 2017 on NSE & BSE

 

 

Further Fund Offer 3 (FFO 3) Further Fund Offer 4 (FFO 4) Further Fund Offer 5 (FFO 5)
  • FFO 3 was launched in November 2018
  • FFO 3 received overwhelming response; FFO 3 collection was Rs.31,203 crs, out of which Rs.14,203 crs was refund to investors due to the issue size limit of Rs.17,000 crs.
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 10th December 2018 on NSE & BSE
  • FFO 4 was launched in March 2019
  • FFO 4 received overwhelming response; FFO 4 collection was Rs.30,464 crs, out of which Rs.20,464 crs was refund to investors due to the issue size limit of Rs.10,000 crs.
  • Participation across various categories of investors
  • Units of CPSE ETF were listed on 1st April 2019 on NSE & BSE
  • Further Fund Offer 5 (FFO 5) was launched in July 2019
  • FFO 5 was initially launched with an issue size of Rs.8,000 Crs, but due to an overwhelming response across various categories the issue size was scaled up to Rs.11,500 Crs
  • FFO 5 collection was Rs.48,485 Crs, out of which Rs.36,985 Crs has been refunded to investors
  • FFO 5 Units of CPSE ETF were listed on 29th July 2019 on NSE & BSE

 

Features of CPSE FFO

With CPSE ETF FFO, retail investors can unlock wealth and value creation opportunities.

Features/USPs of CPSE FFO - Flexibility
Flexibility
Trade as per your convenience on a real-time basis
Features and USPs of CPSE FFO - Exposure
Exposure
Increase portfolio exposure across Public Sector companies through a single instrument.
Features and USPs of CPSE FFO - Diversification
Diversification
Gain portfolio diversification through investment in blue-chip Maharatna, Navaratna or Miniratna stocks.
Features and USPs of CPSE FFO - Price Advantage
Price Advantage
Avail upfront discount along with preferential allocation of retirement funds.
Features and USPs of CPSE FFO - Attractive Valuation
Attractive Valuation
Superior P/E ratio and dividend yields compared to broader market index. Find detailed comparison here.
Features and USPs of CPSE FFO - Expense Ratio
Expense Ratio
Take advantage of significantly lower expense ratio i.e. 0.0095% effective from FFO 3

How to Invest?

CPSE ETF can be bought with a Demat trading account, just like normal exchange traded funds. With HDFC securities’ multiple trading platforms, investing in CPSE ETF FFO has become easier than ever.

 

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