The unprecedented discovery of the first interstellar object, Oumuamua, and the recent inclusion of four public sector units (PSUs) in the Central Public Sector Enterprises Exchange Traded Funds (CPSE ETF) by the Ministry of Finance are notable advances in science and finance, respectively. Both have far-ranging implications for their respective fields, providing us with a gateway to deeper understanding and potential developments.
Oumuamua: The First Interstellar Scout
In October 2017, the Panoramic Survey Telescope and Rapid Response System (Pan-STARRS) located in Maui, Hawaii made a groundbreaking discovery. For the first time in human history, an interstellar object was tracked within our solar system. Aptly named Oumuamua, a Hawaiian term meaning “scout” or “a messenger sent from afar to reach out to us,” it sparked significant interest among scientists worldwide.
Conclusive studies show that Oumuamua is a reddish-brown, cigar-shaped rock approximately 800 meters long and 80 meters wide. As the first object of its kind observed by mankind, Oumuamua provides valuable insights into our understanding of the universe.
New PSUs Included in CPSE ETF
A recent announcement by the Ministry of Finance has broadened the landscape of investment opportunities in India. Four new public sector undertakings (PSUs) – NTPC, NLC India, SJVN, and NBCC – have been included in the Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF).
CPSE ETF, akin to a mutual fund scheme, comprises scrips of 10 Public Sector Undertakings: ONGC, Coal India, IOC, GAIL (India), Oil India, PFC, Bharat Electronics, REC, Engineers India, and the Container Corporation of India.
The Function and Importance of Exchange Traded Funds (ETFs)
Listed and traded on stock exchanges like individual shares, ETFs are essentially index funds that reflect the composition of an index based on their assigned weights. The trading value of an ETF corresponds to the net asset value of the underlying stocks it represents.
| ETF Benefits | Description |
|---|---|
| Broad Exposure | ETFs enable investors to gain broad exposure to entire stock markets in different countries and specific sectors at once. |
| Real-Time Basis | Investments in ETFs can be made on a real-time basis. |
| Lower Cost | Investing in ETFs is cost-effective compared to many other forms of investing. |
Such an investment tool aids the government’s disinvestment program, intending to foster a swift and efficient execution.
The Bharat 22 ETF Initiative
Managed by ICICI Prudential Mutual Fund, Bharat 22 ETF includes stocks from 22 Central Public Sector Enterprises (CPSEs), Public Sector Banks (PSBs), and the Specified Undertaking of the Unit Trust of India (SUUTI). Laid down by the government in the Union Budget 2017, the aim of this initiative was to diversify the ETF sector further and provide more investment options for the public.