Reliance Mutual Fund announces FFO3 for public sector ETF

Reliance Mutual Fund (RMF) announced Further Fund Offer 3 (FFO3) of the Central Public Sector Enterprises - Exchange Traded Fund (CPSE ETF).

CPSE ETF is a passive investment fund that was created to help the government in divesting stakes of select Central Public Sector Enterprises (CPSE) through Exchange Traded Funds (ETF). The fund invests in the Nifty CPSE Index stocks that includes 11 PSU companies selected on the basis of established track record, government holding, market capitalisation, dividend history, sector representation but in the same proportion and weightage as of the index.

Post the successful NFO in 2014, Government of India decided to launch two more tranches / Further Fund Offer (FFO) in January and March 2017 which got a good response from investors. FFO3 is part of the government’s overall disinvestment program, announced by the Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, using the ETF route.

Reliance Mutual Fund proposes to raise upto Rs. 8,000 crore (US$ 1.12 Billion) in FFO3 as Initial Amount, plus an Additional Amount (if any). The ffo3 is open for all categories of investors including anchor investors, retail investors, retirement funds, QIBS, non-institutional investors and foreign portfolio investor.