NSE's index services subsidiary, NSE Indices Limited, on Thursday said it has launched one more index under the Nifty Bharat Bond index series. The Bharat Bond index series follows a 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.
Nifty Bharat Bond Index - April 2032- has been launched within the Nifty Bharat Bond index series, according to a statement. In December 2019, NSE Indices launched the first two indices in the Bharat Bond index series with maturities in April 2023 and April 2030, and in July 2020, further two indices with maturities in April 2025 and April 2031 were launched.
"The upcoming Bharat Bond ETF which is fifth in the series will track the newly launched Nifty Bharat Bond index maturing in 2032 and will provide more investment choices to fixed income investors," Mukesh Agarwal, CEO, NSE Indices, said.
He further said that the target maturity based exchange traded funds (ETFs) are appealing for both the retail and institutional investors due to high credit quality of issuers, liquidity as they are exchange traded, high predictability of returns, tax-efficiency, and very low fund management fees.
The existing four Bharat Bond ETFs managed an overall assets under management (AUM) of more than Rs 37,000 crore as on November 30, 2021.