Moneycontrol
Jan 12, 2018 02:58 PM IST | Source: Moneycontrol.com

Bharat 22 ETF AUM drops by over Rs 3,000 crore in just one month

With a bunch of the fund’s total assets coming from rich, short-term investors, it came as no surprise when some of them redeemed their holdings one month into the investment.

Despite receiving the highest subscription for a new fund offer in the history of the Indian mutual fund industry, the Bharat 22 ETF has seen its assets under management (AUM) drop by over Rs 3,000 crore in just one month.

With a bunch of the fund’s total assets coming from rich, short-term investors, it came as no surprise when some of them redeemed their holdings one month into the investment.

Of course, as was with the total assets managed, the level by which the fund’s asset base dropped in a month is also a first for the MF industry. Some of the smaller fund houses in the country don’t even manage assets worth Rs 3,000 crore.

According to data compiled by ICICI Prudential AMC, which managed the Bharat 22 ETF, the scheme’s total AUM as on December 31 stood at Rs 6,243 crore, roughly 33 percent lower than the Rs 9,319 crore at the end of November.

The Bharat 22 ETF is a part of the government’s overall disinvestment program. After getting bids worth over Rs 31,000 crore for the ETF, the government decided to retain Rs 14,500 crore, which is more than double the scheme’s current AUM.

“ICICI Prudential AMC-managed Bharat 22 ETF saw a wide participation from across the investment categories, including retail investors. As of December 2017, only 0.6% of the number of applicants have redeemed their investments,” a spokesperson of ICICI Prudential AMC was quoted as saying by DNA Money.

The spokesperson added that in the fund house’s view, Bharat 22 ETF still remains one of the most attractive propositions in the market, allowing investors to own stakes in the crown jewels of the Indian economy.
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