The overall passive debt category has crossed Rs 1.15 lakh crore mark at the industry level – this growth was kickstarted 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 the fund ETFs — 2023, 2025, 2030, 2031, and 2032 — which can help investors to choose the right maturity according to their needs.
“The success of Bharat Bond ETFs is a testament to the financial strength of PSUs and the trust that they inspire in investors. We are happy that our maiden debt ETF has achieved phenomenal success,” Tuhin Kanta Pandey, Secretary DIPAM, Ministry of Finance, said.
The ETF invests in constituents of the Nifty Bharat Bond Indices, consisting of AAA-rated public sector companies.
Post 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 asset under management (AUM) crossing Rs 1.15 lakh crore as on September 2022.
“We not only brought to market India’s first corporate bond ETF but also created a product and product category from the ground up. In the process, we were able to bring to investors a unique investment offering and also become a leader in the fixed income and passive debt category,” Radhika Gupta, MD & CEO, Edelweiss Asset Management Limited, said.
Edelweiss AMC is a leader in the passive debt category and has reached an AUM of more than Rs 60,000 crore as of September this year in a little over two years. This is more than 52 per cent of the total industry’s AUM with 10 different target maturity offerings.