Home Business NSE launches new Nifty Bharat Bond Index

NSE launches new Nifty Bharat Bond Index

The total assets under management of all India Bond ETFs has now grown to over Rs 52,000 crore.

New Delhi:

NSE Indices, a subsidiary of NSE, has said that it has launched another index under Nifty Bharat Bond Index Series.

The India 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.

According to a release by NSE on Thursday, Nifty Bharat Bond Index – April 2033 – has been launched within the Nifty Bharat Bond Index Series.

In December 2019, NSE Indices launched the first two indices in India Bond Index with maturities in April 2023 and April 2030, and in July 2020, two indices with maturities in April 2025 and April 2031 were launched.

“The upcoming Bharat Bond Exchange-Traded Fund (ETF) which is the sixth in the Bharat Bond ETF series will track the newly launched Bharat Bond Index maturing in 2033. The first Bharat Bond ETF to track Nifty Bharat Bond Index Dec 2019 was launched in 2015. With initial assets under management of around Rs 12,000 crore,” said Mukesh Agarwal, Chief Executive Officer (CEO) of NSE Indices.

He further said that in the last three years, the total assets under management of all India Bond ETFs has now increased to more than Rs 52,000 crore. The success of this product is due to the unique composition of the index, which has attributes such as high credit quality of the issuers, high predictability of returns, liquidity as they are exchange traded and high tax-efficiency.

The base date for the Nifty Bharat Bond Index – April 2033 is November 30, 2022 and the base price is 1,000. The Index will be rebalanced/reconstituted at the end of each calendar quarter.

The launch of Bharat Bond ETF has also opened up the target maturity date index fund category with total assets under management of over Rs 1.30 lakh crore. Mukesh Agarwal said that along with the existing five target maturity indices, the launch of the new India Bond Index maturing in 2033 will provide more investment options to fixed income investors and help create a ladder structure of different maturities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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