Edelamc - BBeETF0432

About Edelweiss Nifty BHARAT Bond Index – April 2032

• This is an open-ended target maturity exchange-traded bond fund that primarily invests in constituents of the Nifty BHARAT Bond Index – April 2032, featuring relatively high interest rate risk and low credit risk.
• The Edelweiss Nifty BHARAT Bond ETF – April 2032 measures the performance of AAA-rated bonds issued by government-owned entities that are set to mature during the 12 months leading up to the index’s maturity date.
• Offered by the Edelweiss Mutual Fund, the scheme was launched on December 13, 2021.
• As of July 30, 2024, the Edelweiss Nifty BHARAT Bond ETF – April 2032’s assets under management (AUM) stood at ₹11,357.9 crore.
• The Edelweiss Nifty BHARAT Bond ETF – April 2032 has an average yield of 7.52%, an average Macaulay duration of 5.83 years, and an average maturity of 7.48 years as of June 30, 2024.
• At present, Dhawal Dalal is the fund manager for the Edelweiss Nifty BHARAT Bond ETF – April 2032.

Investment Objective & Benchmark

• The benchmark for the fund is the Nifty BHARAT Bond Index - April 2032.
• The investment objective of the index, part of the Nifty BHARAT Bond Index Series, is to measure the performance of a portfolio of AAA-rated bonds issued by government-owned entities.
• This investment option allows a person to invest in the bonds of public sector companies through a single investment.
• The index follows a unique structure with a fixed maturity date of April 15, 2032.
• It represents the performance of the maturity-targeted segment of the corporate bond market.
• The index uses a total return methodology and includes 46 constituents from 15 issuers.
• Each issuer’s weight in the index is capped at 15%.
• The index is reviewed and reconstituted every calendar quarter.
• There is no exit load on the index.
• According to the risk metre, the index carries a moderate level of risk.

Asset Allocation & Portfolio Composition

• In terms of instrument allocation, the portfolio holds 83.7% in bonds, 16.6% in Government of India securities and 2.86% in others.
• The category averages for the same are 78.69% in government-backed securities, 18.21% in low-risk securities and 3.09% in others.

The index’s constituents include these companies with their percentage in the assets:

• 6.54% GOI 17/01/2032: 16.6%
• 6.92% REC Ltd. 20/03/2032: 13.52%
• 6.92% Power Finance Corporation Ltd. 14/04/2032: 10.96%
• 7.48% Mangalore Refinery and Petrochemicals Ltd. 14/04/2032: 7.41%
• 6.87% National Highways Authority of India Ltd. 14/04/2032: 7.05%
• 6.87% Indian Railway Finance Corporation Ltd. 14/04/2032: 6.44%
• 7.79% Indian Oil Corporation Ltd. 12/04/2032: 4.59%
• 6.85% National Bank for Agriculture & Rural Development 14/04/2032: 4.26%
• 7.81% Hindustan Petroleum Corporation Ltd. 13/04/2032: 3.59%
• 6.85% NLC India Ltd. 13/04/2032: 3.25%
• 6.92% Indian Railway Finance Corporation Ltd. 31/08/2031: 2.41%
• 6.69% NTPC Ltd. 13/09/2031: 0.94%
• 7.55% Power Grid Corporation of India Ltd. 21/09/2031: 0.64%
• 8.12% Export-Import Bank of India 25/04/2031: 0.6%
• 8.1% NTPC Ltd. 27/05/2031: 0.51%
• 8.11% Export-Import Bank of India 11/07/2031: 0.41%
• Others, including CBLO: 0.35%
• 7.3% National Bank for Agriculture & Rural Development 26/12/2031: 0.31%
• 8.17% NHPC Ltd. 27/06/2031: 0.14%
• 7.02% Export-Import Bank of India 25/11/2031: 0.09%
• 7.25% Nuclear Power Corporation of India Ltd. 15/12/2031: 0.04%