NSE Indices launches new Nifty BHARAT Bond Index series

Ahead of the third tranche of Bharat Bond ETF launch on December 3, NSE Indices Limited, NSE’s index services subsidiary, has launched one more index under the Nifty BHARAT Bond Index series.

Bharat Bond ETF is an Exchange Traded Fund listed on NSE, which invests your money in public sector bonds. The fund has a defined maturity date wherein you will receive your investment amount with returns. You can buy or sell units on exchange (NSE) anytime during the tenure of the fund.  

"The newly-launched 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," said a statement from NSE Indices on Thursday. The new index has been launched within the Nifty BHARAT Bond Index series: Nifty BHARAT Bond Index - April 2032.  

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The Nifty BHARAT Bond Index – April 2032 has a base date of November 30, 2021 and a base value of 1000. The index will be rebalanced/reconstituted at the end of every calendar quarter.

“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," said Mukesh Agarwal, CEO, NSE Indices.

He further said that the Target Maturity Based 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 AUM of more than Rs. 37000 crores as on November 30, 2021,” informed Mukesh Agarwal.

Earlier 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.

BHARAT Bond ETF Features:
* Money is invested in Public Sector Bonds
* The fund is managed at a very low cost of 0.0005% p.a. (maximum ₹1 for Rs 2,00,000 worth of investment)  
* A bond like structure with fixed maturity provides you with predictable and stable returns at maturity
* You can buy or sell during trading hours on the exchange