NSE’s subsidiary NSE Indices has said it has launched another index under the Nifty Bharat Bond Index series.
The Bharat Bond Index series follows a target maturity structure where each index in the series measures the performance of a portfolio of ‘AAA’-listed bonds issued by government-owned entities maturing in a given year.
Nifty Bharat Bond Index – April 2033 – has been launched within the Nifty Bharat Bond Index series, according to a release from NSE on Thursday.
In December 2019, NSE Indices launched the first two indices in the Bharat Bond Index with maturities in April 2023 and April 2030, and two more indices with maturities in April 2025 and April 2031 were launched in July 2020.
“The upcoming Bharat Bond exchange-traded fund (ETF), which is sixth in the Bharat Bond ETF series, will track the newly launched Nifty BHARAT Bond Index which matures in 2033. The first Bharat Bond ETFs to cross the Nifty Bharat Bond indices were launched in December 2019 with initial assets under management of approximately Rs 12,000 crore,” said Mukesh Agarwal, Chief Executive Officer (CEO), NSE Indices.
He further said that over the past three years, the total assets under management of all Bharat Bond ETFs has now grown to more than Rs 52,000 crore. The success of this product is due to the unique structure of the index with characteristics such as high credit quality of issuers, high predictability of returns, liquidity as they are traded on the exchange and high tax efficiency.
The Nifty Bharat Bond Index – April 2033 has a base date of 30 November 2022 and a base value of 1,000. The index is rebalanced/rebalanced at the end of each calendar quarter.
The launch of the Bharat Bond ETFs has also opened the index fund category ahead of its target maturity date with total assets under management of over Rs 1.30 lakh crore. Together with the existing five target maturity indices, the launch of the new Bharat Bond index due in 2033 will provide more investment choices to fixed income investors and will help create a ladder structure of different maturities, Mukesh Agarwal added.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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