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NEW DELHI: Edelweiss Mutual Fund has announced the launch of the fourth tranche of BHARAT Bond ETF – India’s first corporate bond ETF (exchange-traded fund). 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.
So far, five maturities of Bharat Bond ETFs have been launched – 2023, 2025, 2030, 2031, & 2032.
The maiden offering of Bharat Bond ETF was launched in 2019.
Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), Ministry of Finance, said, “‘BHARAT Bond ETF programme 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 ₹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.”
“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. We take great pride in launching BHARAT Bond ETF along with Government of India, which paved way for an entire new Mutual Fund category and changed India’s investing landscape,” said Radhika Gupta, managing director and chief executive, Edelweiss Mutual Fund.
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