Bharat Bond ETF invests only in ‘AAA’ rated bonds of public sector companies, the third tranche in December last year received a good response from investors and the issue was subscribed 6.2 times.
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government from friday Bharat Bond ETF Will present the fourth installment of This is India’s first corporate bond Which is bought and sold in the exchange. Fund Managing Edelweiss mutual fund said on Thursday that the new offering of ETFs would open on December 2 and close on December 8. The funds raised through this offer will be used by the Central Public Sector Enterprises (CPSEs) for capital expenditure.
This new Bharat Bond ETF and Bharat Bond Fund of Fund (FOF) series will mature in April 2033. Fund of Fund is such an investment fund through which the fund invests in other funds.
Proposal to raise Rs 1000 crore
Under the fourth tranche, the government has proposed to raise an initial amount of Rs 1,000 crore with a green shoe option of Rs 4,000 crore. In December last year, the government released the third tranche with an initial issue amount of Rs 1,000 crore. The issue was subscribed 6.2 times.
Received positive response from investors
Tuhin Kant Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM), under the Ministry of Finance, said that since the launch of Bharat Bond ETF, it has received an encouraging response from all categories of investors. Bharat Bond ETF invests only in ‘AAA’ rated bonds of public sector companies. Bharat Bond ETF gives you the benefits of a mutual fund, ETF and a bond. Its cost is very less. At the same time, investing in ETF is also beneficial in many ways, you can easily buy or sell it during the trading period on the exchange. Apart from this, the risk is also very less because it invests only in AAA rated bonds. Along with this, the tax benefits and reinvestment are also taken care of by the fund house.