Bharat Bond Exchange Traded Funds (ETFs), an initiative of the Central Government, have exceeded Edelweiss Mutual Fund (MF) on Wednesday said that in just two-and-a-half years, it has crossed Rs 50,000 crore Asset Under Management (AUM). Bharat Bond ETF is an exchange traded fund that invests in debt of public sector companies. The ETF currently invests only in ‘AAA’ rated bonds of public sector companies.
Edelweiss AMC is the fund house that manages this ETF and the fund house has also launched a ‘Fund of Funds’ (FOF) for the ETF to facilitate retail investors to buy/sell like normal mutual funds.
The funds raised through debt ETFs help in easing the lending schemes of the participating CPSEs or Public Sector Banks. It also helps them to meet their capital expenditure needs.
Bharat Bond ETF across 50,000 crore AUM mark: 5 things to know
- The overall passive loan category is exceeded 1.15 lakh crore figure at industry level
- First tranche of Bharat Bond ETF in December 2019 and approx 12,400 crore
- So far, five tranches of Bharat Bond ETF have been launched. There are 5 different maturities offered by the fund ETF, 2023, 2025, 2030, 2031 and 2032
- The ETF invests in components of the Nifty Bharat Bond Index, which includes AAA-rated public sector companies.
- Edelweiss MF manages Bharat Bond Exchange Traded Fund (ETF)
According to experts, Bharat Bond ETF offers certainty of returns (if held till maturity) with high safety of capital as it invests in AAA rated public sector bonds owned by the government.
Tuhin Kanta Pandey, Secretary, Ministry of Finance, DIPAM, said, “The success of Bharat Bond ETF is a testament to the financial strength of PSUs and the confidence they inspire in investors. We are delighted that our first debt ETF has achieved phenomenal success.” (MOF).
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