CPSE ETF is a government-initiated fund comprising shares of multiple central public sector enterprises. It offers investors diversification and potential steady returns.
CPSE ETF stands for Central Public Sector Enterprises Exchange Traded Fund and it is an open-ended scheme on the stock market tracking the Nifty CPSE Index.
CPSE ETF offers a diversified investment in carefully selected public sector companies, reducing risk by spreading investments across multiple sectors.
The CPSE ETF tracks the Nifty CPSE Index of major PSUs, ensuring the ETF mirrors their performance. This provides investors with a comprehensive view of the public sector’s market dynamics.
Investors in CPSE ETF can enjoy tax advantages under schemes like the 'Rajiv Gandhi Equity Savings Scheme', making it a tax-efficient investment, subject to prevailing tax laws.
Traded on stock exchanges, CPSE ETF offers high liquidity. Investors can easily buy or sell ETF units, providing ease of transaction similar to individual stocks.
Government backing of PSUs in CPSE ETF implies stability and reliability, making it a safer investment amid market volatility compared to private sector options.
CPSE ETF pools investor money to buy shares of CPSEs, tracking the Nifty CPSE Index. Investors buy ETF units like stocks, gaining diversified exposure to PSU performance.
CPSE ETFs offer diversified exposure to top PSUs, stable returns, high liquidity, government backing, and tax efficiency, ideal for risk-averse investors.
To invest in a CPSE ETF, open a Demat and trading account with Alice Blue. Choose an ETF based on performance and goals, buy units like stocks, and monitor regularly.