The Bharat Bond Index series follows a target maturity date structure wherein each index in the series measures the performance of a portfolio of 'AAA' rated bonds issued by government owned entities maturing in a specific year.
In December 2019, NSE Indices launched the first two indices in the Bharat Bond Index with maturities in April 2023 and April 2030, and in July 2020, further two indices with maturities in April 2025 and April 2031 were launched.
"The upcoming Bharat Bond ETF which is sixth in the Bharat Bond ETF series will track the newly launched Nifty BHARAT Bond Index maturing in 2033. The first Bharat Bond ETFs tracking the Nifty Bharat Bond indices were launched in December 2019 with initial assets under management of around ₹12,000 crore," Mukesh Agarwal, CEO, NSE Indices, said.
The Nifty Bharat Bond Index – April 2033 has a base date of November 30, 2022 and a base value of 1,000. The index will be rebalanced/reconstituted at the end of every calendar quarter.
“The launch of the Bharat Bond ETFs has also opened up the target maturity date index funds category with overall assets under management of more than ₹1.30 lakh crore. Along with existing five target maturity indices, the launch of the new Bharat Bond index maturing in 2033 will provide more investment choices to fixed income investors and will help create a ladder structure of various maturities," Agarwal added.
Meanwhile, the new tranche of the Bharat Bond ETF, India's first corporate bond exchange traded fund (ETF), was launched on Friday. The new fund offer (NFO) of the ETF will open on December 2 and close for subscription on December 8, said Edelweiss Mutual Fund, which manages the fund. This new Bharat Bond ETF and Bharat Bond Fund of Fund (FOF) series will mature in April 2033. A central government initiative, Bharat Bond ETF invests only in ‘AAA’-rated bonds of public sector companies.
