How-to CPSE ETF PSU ETF

How to buy CPSE ETF on Zerodha

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CPSE ETF (NSE symbol: CPSEETF) is the ETF tracking the Nifty CPSE index, a basket of major listed Central Public Sector Enterprises. It provides concentrated exposure to India’s PSU equity universe. Buying on Zerodha is the standard equity-buy procedure.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with Zerodha.

Step-by-step procedure

Four steps per the procedure infobox.

CPSE constituents

The Nifty CPSE index typically includes (subject to revisions):

  • Major energy PSUs (NTPC, Power Grid, ONGC, IOC, BPCL, GAIL).
  • Defence / capital goods PSUs (BEL, BHEL, HAL).
  • Mining (Coal India).
  • Financial / others (REC, PFC, NHPC).

The index weighting and exact constituents are revised periodically per NSE Indices methodology.

Why a sectoral PSU ETF

ReasonDetail
Government policy beneficiaryPSUs benefit from government capex and policy
Dividend-yieldingMany PSUs are large dividend payers
Cyclical exposureEnergy / commodity-linked PSUs benefit during cycles
Concentrated bet11 stocks; concentrated by design

Risks

  • Government policy risk: Divestment, taxation changes affect PSU values.
  • Concentration: Energy / financials dominant.
  • Cyclical: Performance can lag broader market in non-favourable cycles.

Tax treatment

Same as equity:

  • STCG / LTCG per holding period.

Liquidity

CPSE ETF has reasonable liquidity but is less liquid than NIFTYBEES / GoldBeES. Use limit orders for large positions.

Settlement

T+1.

See also

External references

References

  1. NSE Indices, Nifty CPSE methodology, niftyindices.com.
  2. Zerodha Support, ETF trading, support.zerodha.com.
  3. Income Tax Act, 1961, section 112A.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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