Edelweiss Asset Management Company launches First Corporate Bond ETF of India
The Edelweiss Asset Management Company has launched the First Corporate Bond Exchange Traded Fund(ETF) of India and it is also the largest New Fund Offer (NFO) ever opened for subscription in the country.
Edelweiss Asset Management Company is a subsidiary of Edelweiss Capital Limited (ECL). India’s Corporate Bond ETF (Exchange Traded Fund) is called the Bharat Bond ETF was launched on Thursday, 12th December 2019. The bond will be for investment in AAA-rated bonds of Public Sector Companies. The ETF is designed and managed by Edelweiss AMC under mandated by the Government of India’s Bharat Bond ETF initiative.
The Union Cabinet approved the launch of India’s first bond exchange-traded fund(ETF) earlier on the 4th of this month. The bond ETF will provide safety as its being issued by government-linked entities. Small retail investors will have to invest at least Rs 1,000 in the fund at the beginning, after which they can invest up to Rs 2 lakhs in multiple investments. The Minimum amount is fixed at Rs 10 crore for anchor investors. The bond comes in two maturities- three and ten years and is launched with the aim of providing additional money for the government organizations and Public Sector Undertakings(PSUs).
Category: Economy & Banking Current Affairs