Context: The Finance Ministry on Thursday said that the third tranche of Bharat Bond ETF was
oversubscribed 6.2 times against the base issue size of ₹1,000 crore. “Overwhelming response seen in Bharat
Bond ETF 2032 NFO.
About the Bharat Bond ETF
The Ken Betwa interlinking of rivers (ILR) project was touted as the first river inter-link project under the revised national scheme.
An ETF or exchange traded fund invests in a basket of securities that mostly tracks a certain
index. ETFs are similar to mutual funds, but the big difference is that can be bought and sold
only through the stock exchanges.
BHARAT Bond ETF is an initiative from the Indian government to raise money for various
government organizations by issuing bonds.
The corpus raised through these bonds will help the government cater to the borrowing
requirements of those PSUs whose bonds the fund is holding.
Edelweiss Asset Management has the mandate from the government to manage this BHARAT
Bond ETF program.
The government started this initiative in 2019. So far, there have been 4 issues of BHARAT
Bond ETFs under 2 tranches – BHARAT Bond ETF 2023, BHARAT Bond ETF 2025,
BHARAT Bond ETF 2030, and BHARAT Bond ETF 2031.
BHARAT Bond ETF 2032 is the fifth issue in this series of ETFs.
These BHARAT bond ETFs are issued for a fixed maturity. And that maturity is defined and
indicated in the scheme name and practice. For example, BHARAT Bond ETF 2023 will mature
in April 2023.
Similarly, BHARAT Bond ETF 2032 will mature in April 2032. And you will get your principal
investment as well as returns in 2032 (provided you hold it till maturity).