Bharat Bond ETF 2nd Tranche To Open In July

On Friday, Edelweiss Asset Management said that it will launch the second tranche of Bharat Bond ETF in July, with two new series, to raise up to Rs 14,000 crore. The first series of the ETF (Exchange Traded Fund) received good response in December 2019.

Through the launch of the two new ETF series, Edelweiss Mutual Fund proposes to raise an initial amount of Rs 3,000 crore with a greenshoe option of Rs 11,000 crore based on market demand, the fund house said in a statement.

The two new series will have maturities of April 2025 and April 2031.

The Bharat Bond ETF program is a government initiative. It includes Nifty Bharat Bond Indices that consist of AAA-rated public sector companies. Edelweiss AMC has been given the mandate to design and manage the product.

"The launch is in line with our vision to create a ladder of Bharat Bond ETFs across various maturities on the yield curve. This will provide more options for investors to match their investment needs with different time horizons," Radhika Gupta, CEO of Edelweiss Mutual Fund said.

Bharat Bond Funds of Funds (FOF) with similar maturities will also be launched for investors, who do not have Demat accounts, the fund house said.

The first tranche of Bharat Bond ETF raised over Rs 12,400 crore.