Edelweiss Mutual Fund to launch third tranche of Bharat Bond ETF

The new fund offer (NFO) will start from December 3 and end on December 9, 2021. Through the launch of this new series, Edelweiss Mutual Fund proposes to raise an initial corpus. 1,000 crore with the option of open green shoes.

Edelweiss Bharat Bond ETF Asset Under Management (AUM) 36,359 crore at the end of October 2021. Edelweiss Bharat Bond ETF closed the dormant debt category in India in December 2019. After the launch of Edelweiss MF Bharat Bond ETF in 2019, the total AUM for the passive debt category has increased to approx. 50,000 crores.

According to the fund house, since then, various other asset management companies (AMCs) have launched nine new schemes in this category, but Edelweiss has managed to retain its leadership position with 80% market share.

Commenting on the launch, Radhika Gupta, Chief Executive Officer, Edelweiss Mutual Fund said, “With this new launch of Bharat Bond ETF, we now have five maturities on the yield curve – 2023, 2025, 2030, 2031 and 2032- Which help the investors to choose the right maturity according to their needs. In the current environment where safety is paramount, we are happy to see strong investor demand for these ETFs.”

The ETF will invest in components of the Nifty Bharat Bond Index, which includes AAA-rated public sector companies. Bharat Bond Fund of Funds (FOF) of similar maturity will also be launched for investors who do not have demat accounts.

“The Bharat Bond ETF program has achieved some of the important objectives that were envisaged while designing the program. This has provided overall savings in borrowing cost for the participating CPSEs/CPSUs/CPFIs. It has given investors easy access to the bond markets, especially retail investors looking for an alternative to fixed deposits. In addition, adequate liquidity on the exchange is encouraging investor participation and helping to deepen the bond markets,” said Tuhin Kanta Pandey, Secretary, DIPAM, Ministry of Finance.