Given 80% profit in 1 year, is there still chance to earn from here?

New Delhi. ETF stands for Exchange Traded Funds. If these are such funds, they act like a stock market. You can invest in it at any time of the day. Whereas you don’t get such a facility in mutual funds. However, its risk also increases proportionally. Today we are going to tell you about an ETF that gave investors a return of 77% last year.

We are talking about CPSE ETF. It has become the best performing domestic ETF. CPAE is an ETF where the government sells some of its stake in selected government companies. According to the data available with ACE MF, it has not only outperformed in 2023 but has also become the best performing fund in the country with a return of 50% in the last 3 years. Its 5-year return is around 22%.

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Where and how much?
CPSE ETF is managed by Nippon Life India Asset Management. We tell you that this is the company that launched ETF in India in 2002. Its CPSE ETF includes 11 stocks. By weight, it has the highest investment in the power grid at 20.2 percent. It is followed by 19.9% ​​investment in NPTPC and 18% in Coal India. If we look at the sectoral investments, the highest investment of this fund till the end of 2023 was in the power sector at 46.3%. After that 19.3% is invested in oil.

What is the way forward?
Despite growth over the past 3 years, the CPAE ETF’s price-to-earnings ratio is still close to its 10-year average, according to a Money Control news release. According to experts, the increase in companies in this fund is expected to continue in the future, due to which this fund will also work quickly. Deepak Jasani, head of retail research at HDFC Securities, said there is no need to worry if the current government remains in power, but if the results in the next election go against the ruling party, even temporarily, the funds will suffer. will arrive. be shocked

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