New Delhi: Reliance Mutual Fund has received the government's approval to manage its Rs 3,000 crore CPSE Exchange Traded Fund, which was launched in March 2014.
The CPSE ETF was originally managed by Goldman Sachs MF, which in October 2015 was acquired by Reliance MF.
The Finance Ministry has given its nod to the two fund houses for the transfer of management of Central Public Sector Enterprises (CPSE) ETF. Consequently, Reliance MF will now manage the ETF.
"Reliance MF now has the highest share of ETF and strong track record, technical expertise and team in this domain with this approval. It has now equipped to handle all future ETF mandates on competence, experience and expertise in the industry," Reliance MF Chief Executive Sundeep Sikka said.
CPSE ETF, comprising scrips of 10 PSUs, was launched in March 2014 under which retail investors have to invest a
minimum of Rs 5,000 to buy units. It had then garnered Rs 3,000 crore to the exchequer.
Apart from the existing CPSE ETF, government is planning to create a new ETF comprising stocks of PSUs in the current fiscal with an estimated corpus of Rs 6,000 crore.