Publish Date:
Edelweiss Mutual Fund has launched the series-2 of an open-ended Target Maturity Exchange Traded Bond Fund predominately investing in constituents of Nifty BHARAT Bond Index - April 2025, and Nifty BHARAT Bond Index - April 2031.
The scheme has 2 maturity options (Short Term and Long Term) and are accordingly known as Bharat Bond ETF – April 2025, and Bharat Bond ETF – April 2031.
The investment objective of Bharat Bond ETF – April 2025 is to track the Nifty BHARAT Bond Index – April 2025 by investing in bonds of AAA rated CPSEs/CPSUs/CPFIs and other Government organizations, subject to tracking errors.
The investment objective of Bharat Bond ETF – April 2031 is to track the Nifty BHARAT Bond Index – April 2031 by investing in bonds of AAA rated CPSEs/CPSUs/CPFIs and other Government organizations, subject to tracking errors.
BHARAT Bond ETFs will have a fixed maturity period having a diversified portfolio of Public Sector Company Bonds that meet the eligibility criteria of the Index.
It will seek to track investment results of the respective Nifty BHARAT Bond Index, and will invest in AAA rated Public Sector bonds maturing on or before the maturity date of the respective fund.
The fund will endeavor to hold bonds till their maturity with an aim to provide stable and predictable returns, and will have similar maturity as that of the respective BHARAT Bond Index.
The performance of the Bharat Bond ETF – April 2025, and Bharat Bond ETF – April 2031 will be benchmarked against Nifty BHARAT Bond Index - April 2025, and Nifty BHARAT Bond Index - April 2031 respectively. The Indicative Yield of the underlying Nifty BHARAT Bond Index - April 2025 is at 5.71%, whereas that of the Nifty BHARAT Bond Index - April 2031 is at 6.82% (as on 30th June 2020)
*The indicative yield provided is of the Index and not that of the Scheme. The Scheme (s) are neither Capital Protected nor guaranteed Return Product and may or may not generate return in line with Index. Indicative Yield of the Index is as on 30th June 2020
The fund will be managed by Mr. Dhawal Dalal and Mr. Gautam Kaul.
The NFO opens for subscription on July 14, 2020 and closes on July 17, 2020.
The unit of the scheme is priced at Rs 1,000/- each during the New Fund Offer Period and at NAV based prices during the Ongoing Offer Period.
The minimum application amount for Retail Individual Investors, during the NFO period is Rs 1,001/- and in multiples of Rs 1/- thereafter, subject to maximum investment amount of Rs. 2,00,000/-.
The minimum application amount for Retirement Funds, QIBs, Non Institutional Investors, during the NFO period is Rs 2,00,001/- and in multiples of Rs 1/- thereafter.
Investors holding Demat account can invest in the respective BHARAT Bond ETF.
Investors who do not have a Demat account have an alternative medium to invest via BHARAT Bond FoFs.