India’s first corporate bond ETF launched by this asset management company; check key details

By: |
Published: December 12, 2019 6:43:48 PM

Edelweiss Asset Management Company Thursday launched the country's maiden corporate bond exchange traded fund though which it aims to raise up to Rs 15,000 crore.

Bharat Bond ETF, mutual fund investors, debt mutual fund, ETF, PSUs bond, corporate bond, stock market, stock exchange, opportunity for mutual fund investors, भारत बांड ईटीएफ, म्यूचुअल फंड निवेशकThis ETF is an initiative of the department of investment and public asset management and the latter has given the mandate to Edelweiss AMC to design and manage the product.

Edelweiss Asset Management Company Thursday launched the country’s maiden corporate bond exchange traded fund though which it aims to raise up to Rs 15,000 crore. Called Bharat Bond ETF, it will invest in AAA-rated bonds of public sector companies. “Through the ETF, we proposes to raise an initial amount of Rs 3,000 crore with a green shoe option of Rs 2,000 crore in the three-year maturity period (2023) and Rs 4,000 crore with a green shoe option of Rs 6,000 crore in the 10-year maturity bucket (2030),” Edelweiss Mutual Fund chief executive Radhika Gupta said.

This ETF is an initiative of the department of investment and public asset management and the latter has given the mandate to Edelweiss AMC to design and manage the product. Gupta said the ETF will have a unique target maturity structure designed for fixed income investors, looking for predictability of returns in their debt investments, she said.

The ETF with a three-year maturity will follow the Nifty Bharat bond index-April 2023 and the one with a 10-year maturity will follow the Nifty Bharat bond index-April 2030. It will provide safety to investors as it consists of a high quality basket of public sector companies, liquidity and access at a much lower ticket size, compared to investment in individual bonds.

The company has also launched Bharat bond funds of funds for investors who do not have demat accounts. The subscription opens on December 12 and closes on 20 post which the bonds will be traded on the bourses. Earlier this month, the Cabinet had approved the
launch of ETF for bonds to create an additional source of funding for Central public sector units and state-owned financial institutions. On Wednesday insurance regulator, Irdai, allowed insurance companies to invest in debt ETFs of central units.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Saudi Aramco set to hit $2 trillion market value
2Indian bonds become worst Asia’s worst performer after RBI’s surprise move
3Stellar listing: Ujjivan Small Finance Bank shares debut at 58% premium to IPO price