Can you please share your thoughts on CPSE ETF FFO January 2017. As per my understanding Tranche – 1 has given a good returns so far. So, is it advisable to invest in tranche – 2. It is opening on 17th Jan.
I stay away from such ETF. Reasons are as below.
- All are public sector companies, which in many cases act as a scapegoat to central government policies. Hence, I don’t want to risk my money based on policy issues of these political parties.
- Highest exposure to Oil and Gas sector means I consider this as sector specific than diversified ETF.
- Lock-in is one more reason for me to stay away. Why should I lock money in these 10 stocks (irrespective of their performance)?
Hence, better to avoid these news based fancy items and stick to basics.