Edelamc - EBBETF0430

About Edelweiss Mutual Fund BHARAT Bond ETF — April 2030

• Edelweiss Mutual Fund BHARAT Bond ETF — April 2030 is an open-ended Target Maturity scheme from the Edelweiss Mutual Fund House. The fund is sponsored by Edelweiss Financial Services Limited. It is used as an Exchange Traded Fund (ETF).
• Mumbai-registered Edelweiss Asset Management Limited is the controlling company of the ETF. Edelweiss Trusteeship Company Limited is the trustee, while the fund managers are Dhawal Dalal and Rahul Dedhia.
• The scheme was launched on December 26, 2019. The ETF is listed on the National Stock Exchange of India (NSE) and BSE.
• BHARAT Bond ETF — April 2030 tracks and mirrors the NIFTY BHARAT Bond Index-April 2030 (TRI). It endeavours to ensure the peaks and valleys of the underlying index are reflected to the extent possible in the fund values.
• Since its commencement, the scheme has yielded a compound annualised Growth Return (CAGR) of 7.46% as of July 31, 2024. The ETF has posted 7.91% CAGR in the past one year. The ETF has given annualised returns of 6.35% in the past three years.
• The Assets Under Management (AUM) of BHARAT Bond ETF stood at ₹19,274.2 crore as of August 28, 2024.

Investment Objective and Benchmark

• The scheme’s investment objective is to “replicate Nifty BHARAT Bond Index – April 2030 by investing in bonds of CPSEs/CPSUs/CPFIs and other Government organizations, subject to tracking errors.”
• Nifty BHARAT Bond Index is a barometer of the behaviour and performance of the bouquet of AAA-rated bonds issued by government-owned units, maturing in a specific year. Hence, Nifty Bharat Bond April 2030 indicates the performance of such bonds maturing in 2030.
• It comprises central public sector enterprises including maharatna, navratna and miniratna. It also includes government-owned public financial institutions and statutory bodies formed by Parliamentary legislation and having outstanding bonds of over ₹ 100 crore.
• NIFTY BHARAT Bond Index-April 2030 (TRI) is reviewed at the end of each calendar quarter. The data cut-off date is 15 working days before the last working day of the calendar quarter. The index will terminate on its maturity on April 15, 2030.
• The ETF picks its components in a proportion that apes, as close as possible, their weightage in the NIFTY BHARAT Bond Index-April 2030 (TRI).

Asset Allocation and Portfolio Composition

• The asset allocations comprise 95% to 100% in securities issued by eligible CPSEs/CPSUs/CPFIs and other Government organisations which are either part of or eligible to be part of Nifty BHARAT Bond Index –April 2030. For the rest 0% to 5%, the fund can dip into government securities maturing on or before maturity date of the Scheme, treasury bills repurchase (TREPS) and REPO in government bonds.
• As of June 30, 2024, Edelweiss Mutual Fund BHARAT Bond ETF held 88.18% of its assets in non-convertible debentures. The government of India controls 11.31% of its assets and the remaining 0.51% is made up of cash and other receivables.
• The Scheme invests in AAA-rated bonds brought out by eligible CPSEs/CPSUs/CPFIs and other government units maturing not beyond the maturity date of the scheme.
• As of June 30, 2024, the top 7 non-convertible debenture holdings in the ETF comprised around 74.12 %of its assets. According to the company website, the top three sectors (financial service, power, oil gas and consumable fuels) constituted 75.55% of the assets.

Top 5 holding in Edelweiss Mutual Fund BHARAT Bond ETF - April 2030 (as of July 31, 2024):

• Power Finance Corporation Ltd- 13.77%
• REC Ltd- 13.42%
• Indian Railway Finance Corporation Ltd- 12.64%
• National Highways Authority of India- 11.7%
• Government of India- 10.97%