NSE Adds 2 More Bharat Bond Indices

NSE's index services unit NSE Indices has launched two more indices under the Nifty Bharat Bond Index series, namely, Nifty Bharat Bond Index-April 2025 and Nifty Bharat Bond Index-April 2031.

The Bharat Bond Index series follows a unique target maturity date structure wherein each index in the series measures the performance of a portfolio of AAA-rated bonds issued by government-owned entities maturing in a specific year, the exchange said.

The first two NSE indices in the Bharat Bond Index series, with maturities in April 2023 and April 2030, were launched in December last year.

"The upcoming Bharat Bond ETFs tracking these newly launched Nifty Bharat Bond Indices maturing in 2025 and 2031 will provide more investment choices to fixed-income investors," said Mukesh Agarwal, CEO at NSE Indices.

"With high credit quality issuers, very low fund management fees, exchange traded, tax-efficiency and high predictability of returns, the target maturity based ETFs have the potential to change the way retail investors invest in fixed income markets," he added.

The Bharat Bond Series II to set to be launched on 3 July.

The two new indices have a base date of 30 June 2020 and a base value of 1,000. These will be rebalanced/reconstituted at the end of every calendar quarter.