Bharat Bond ETF crosses Rs 50,000 crore in assets under management


Bharat Bond Exchange Traded Funds, a central government initiative, crossed the 50,000 crore mark in assets under management in just two and a half years, Edelweiss Mutual Fund said on Wednesday.

The fund house manages Bharat Bond exchange-traded funds (ETFs).

The global passive debt category broke the Rs 1.15 lakh crore mark at the industry level, this growth was kicked off by the launch of the first tranche of the Bharat Bond ETF in December 2019, according to a statement.

So far, five tranches of Bharat Bond ETFs have been launched. There are 5 different maturities offered by fund ETFs – 2023, 2025, 2030, 2031 and 2032 – which can help investors choose the right maturity according to their needs.

“The success of Bharat Bond ETFs demonstrates the financial strength of UAPs and the confidence they inspire in investors. We are happy that our first debt ETF has been phenomenally successful,” Tuhin Kanta Pandey, DIPAM Secretary, Ministry of Finance, said.

The ETF invests in components of the Nifty Bharat bond indices, which are composed of AAA-rated public sector companies.

Following the success of Edelweiss AMC Bharat Bond ETF, a total of 30 target maturity funds have been launched since 2019 by 11 different asset management companies, with their assets under management (AUM) exceeding Rs 1.15 lakh crore in September 2022.

“We not only brought India’s first corporate bond ETF to market, but also created a product and product category from scratch. ‘unique investment and also become a leader in the fixed income and passive debt category,’ said Radhika Gupta, MD and CEO, Edelweiss Asset Management Limited.

Edelweiss AMC is a leader in the passive debt category and reached an AUM of over Rs 60,000 crore in September this year in just over two years. This represents over 52% of the industry’s total assets under management with 10 different target maturity offerings.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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