Fourth tranche of BHARAT Bond ETF: Maturity, Investment and NFO details you should know | The Financial Express

Fourth tranche of BHARAT Bond ETF: Maturity, Investment and NFO details you should know

BHARAT Bond ETF is India’s first corporate bond ETF and it is an initiative of the Government of India, from the Department of Investment and Public Asset Management.

Fourth tranche of BHARAT Bond ETF: Maturity, Investment and NFO details you should know
Here's all you need to know about the fourth tranche of Bharat Bond ETF. Representational image

Edelweiss Mutual Fund in association with the Government of India has launched the fourth tranche of BHARAT Bond ETF. The BHARAT Bond ETF is India’s first corporate bond ETF and it is an initiative of the Government of India, from the Department of Investment and Public Asset Management. The latter has given the mandate to Edelweiss Mutual Fund to design, launch and manage the product.

In the last three years, Edelweiss AMC has successfully launched five ETFs with an AUM of over Rs 50,000 crore.

Commenting on the launch, Tuhin Kanta Pandey, Secretary, DIPAM, Ministry of Finance said, “’BHARAT Bond ETF program has received an enthusiastic response from all categories of investors since its launch. BHARAT Bond has created a unique opportunity for all Indian investors to invest in PSU Bonds and fuel India’s growth story. Crossing a landmark Rs. 50,000 cr. AUM is a testament that BHARAT Bond has emerged as a trusted investment avenue with better tax efficiency for many Indian investors.”

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Radhika Gupta, MD & CEO of Edelweiss Mutual Fund said, “Target Maturity Fund category is growing at an exciting pace post the launch of Edelweiss MF’s Bharat Bond ETF. Investing in long-term debt has been brought to the forefront by these funds. BHARAT Bond ETF now has six maturities – from 2023 to 2033, which will allow investors to select the right maturity as per their investment goals.”

Maturity and NFO details

The new tranche of BHARAT Bond ETF and BHARAT Bond Fund of Fund (FOF) series will mature in April 2033. The New Fund Offer (NFO) will start on 2nd December 2022 and end on 8th December 2022.

With the launch of this new series in the fourth tranche, Edelweiss Mutual Fund has proposed to raise an initial amount of Rs 1,000 crore with a green shoe option of Rs 4,000 crore. So far, five maturities of Bharat Bond ETFs have been launched – 2023, 2025, 2030, 2031, & 2032.

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Where will the ETF invest?

Edelweiss AMC said that the ETF will invest in constituents of the NIFTY BHARAT Bond Indices, consisting of AAA-rated public sector companies. BHARAT Bond ETF Fund of Funds (FOF) with similar maturities will also be launched for investors, who do not have Demat accounts.

(Mutual fund investments are subject to market risks. Please consult your financial advisor before investing)

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First published on: 01-12-2022 at 12:51 IST