Categories: Economy

Edelweiss Mutual Fund Launches Fourth Tranche of ‘BHARAT Bond ETF’

Edelweiss Mutual Fund has announced the launch of the fourth tranche of BHARAT Bond ETF – India’s first corporate bond ETF (exchange-traded fund).

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More About This Development:

A central government initiative, Bharat Bond ETF invests only in ‘AAA’-rated bonds of public sector companies. Edelweiss Asset Management is the fund manager of the scheme. This latest tranche of the ETF and BHARAT Bond Fund of Fund (FoF) series will mature in April 2033. The new fund offer (NFO) will start on 2 December and end on 8 December. Through the launch of this new series, Edelweiss Mutual Fund proposes to raise an initial amount of 1,000 crore with a green shoe option of another 4,000 crore.

Bharat Bond ETF:

Bharat Bond ETF is a target-maturity bond ETF, which has defined fixed maturity, investing in bonds with a similar maturity. So far, five maturities of Bharat Bond ETFs have been launched – 2023, 2025, 2030, 2031, & 2032. The fourth tranche of Bharat Bond ETF comprises AAA-rated public sector undertakings with an indicative yield of 7.5%, a maturity date of April 18, 2033, and a modified duration of 6.66 years.

About This New Launch:

The Centre launched the fourth tranche of India’s first corporate bond exchange-traded fund (ETF) on December 2. The latest Bharat Bond ETF is maturing in April 2033. Subscriptions in this new ETF will be allowed till December 8. Edelweiss AMC is managing the Bharat Bond ETF. Since 2019, the government has launched a series of Bharat Bond ETFs and they have witnessed strong demand from investors as they offer reliability and tax-efficiency debt investment option for a long term basis.

Piyush Shukla

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