Bharat Bond ETFs, April 2030 and April 2023 got listed on stock exchanges today. Bharat Bond ETF Mutual Fund- April 2030 was listed at Rs 1,000 on National Stock Exchange (NSE) today. Later, it was trading at a premium of Rs 4.90 to the offer price of Rs 1,000. The ETF rose 0.44% to the intraday high of Rs 1,004.90 and made an intraday low of Rs 1,000.40.
Similarly, Bharat Bond ETF Mutual Fund- April 2023 listed at 1,000 on NSE today and traded between the range of Rs 1,001.85 to Rs 1,000.
Bharat Bond ETF managed by Edelweiss Mutual Fund is the first-ever corporate bond ETF listed in India. The issue was open for subscription between December 12 to December 20.
Bharat Bond new fund offer (NFO) was subscribed nearly 1.8 times compared to its issue size of Rs 7,000 crore. The issue saw 55,000 investors participating in the NFO.
"BHARAT Bond ETF received an enthusiastic response from all categories of investors. Both tenors of ETF were oversubscribed @ Rs 12,400 crore. Government has decided to retain full amount. Participation by about 55,000 retails investors was the highlight of this issue," DIPAM (Department of Investment and Public Asset Management) Secretary Tuhin Kanta Pandey said in a tweet on Tuesday.
The exchange-traded fund invests only in AAA-rated bonds of public sector companies for two fixed maturity period of 10 years. The ETF will at least consist of eight PSU entities and no single bond issuing company will account for a weight of over 15%, as per ETF guidelines.
The ETF combines the features of a close-ended fund and exchange-traded fund, which virtually makes it an open-ended target maturity product.
Taxation in the case of Bharat Bond is indexation, where long term capital gains are taxed at 20% over inflation. Besides this, Edelweiss MF charges an expense ratio of 0.0005% for managing the ETF, which makes it the cheapest among MF schemes and other ETFs in India.