CPSE ETF March2014 -Goldman Sachs AssetManagement – RGESS Compliant Tax Saving Scheme

Goldman Sachs Asset Management -have come up with RGESS -Rajiv Gandhi Equity Saving Scheme – compliant CPSE ETF – Central Public Sector Enterprises .CPSE Index will be launched by NSE on March 18,2014 to facilitate Govt disinvestment in 10 bluechip CPSE stocks

CPSE index constituent stocks includes:

1. ONGC
2. GAIL India Limited.
3. Coal India Ltd.
4. REC Ltd
5. Oil India Ltd.
6. IOCL
7. PFC
8. Container Corporation Of India Ltd
9. Bharat Electronics Ltd
10. Engineers India Ltd.

One can more details about CPSE index at NSE website – Here.

CPSE ETF by Goldman Asset Management – will open for Retail individual investors on March 19 and closes on March 21, 2014.

This ETF will be listed on NSE and BSE on or before April 11,2014 and thereafter investors can buy-sell through demat account only.

Loyality Units:Investors shall be eligible for 6.66% i.e one unit for every 15 units loyality units from allotment date for one year period.For loyality units ,investor must have continuously held the units and lower unit balance  from allotment will be considered.

CPSE ETF-discount offered by GOI:5% discount on reference market price of the underlying stocks.But investors should not consider it as upfront gain of 5%.You can refer to presentation for which link has given below.

Presenation of CPSE ETF Goldman Sachs

should you invest:

Apart from RGESS tax benefit, discount and loyality units ,this index constitutes more oil,Gas or power sector stocks. Its always difficult to take any sector specific call.Also govt owned companies have their own concerns .Investing in this ETF ,means investing sector specific PSUs which can be avoided.