Edelweiss Asset Management has raised ₹12,395 crore through the first-ever corporate bond exchange traded fund Bharat Bond new fund offer.
The initial NFO issue size of ₹7,000 crore was oversubscribed nearly 1.8 times. The 3-year category received applications for ₹6,982 crore, an oversubscription of 2.3 times and the 10-year category received ₹5,413 crore, which was oversubscribed 1.4 times.
All the subscription will be retained in both the categories to accommodate the demand. With about 55,000 applications received, Edelweiss Mutual Fund’s Bharat Bond NFO witnessed wide retail participation with strong support from digital channels.
Bharat Bond will invest only in AAA rated public sector bonds. The ETF with a three-year maturity will follow the Nifty Bharat Bond index -April 2023 and the one with a 10-year maturity will follow the Nifty Bharat Bond Index – April 2030.
Bharat Bond ETF combines the best features of mutual funds, ETFs and Bonds. It provides safety as it consists of a high-quality basket of public sector companies with liquidity and access to bond markets at a much lower ticket size. Bharat Bond ETF is also the lowest cost mutual fund product in India, said the fund house.
Radhika Gupta, CEO, Edelweiss Mutual Fund said the product is an important step in capital market development which will drive wider investor participation and deepen the bond market.