Edelamc - EBBETF0425

About Edelweiss Bharat Bond ETF

• Edelweiss Bharat Bond ETF is an exchange-traded fund offered by Edelweiss Mutual Fund House.
• It invests predominantly in bonds issued by the government.
• Dhawan Dalal and Rahul Dedhia are the fund managers.
• It was launched on July 23, 2020.
• Edelweiss BHARAT Bond ETF’s assets under management (AUM) stood at ₹13,997 crore as of June 30, 2024.
• As the ETF units are listed on the NSE, BSE one can invest by buying units through a broker.
• All the units can be bought by retail investors directly from the demat account of their choice.

Investment Objective & Benchmark

• The scheme is benchmarked against the Nifty Bharat Bond Index.
• The investment objective of Edelweiss Bharat Bond ETF is to track the Nifty Bharat Bond Index, which comprises AAA-rated bonds issued by public sector companies and other government entities.
• The investment strategy of the ETF is to invest in a diversified portfolio of bonds issued by central public sector enterprises (CPSEs), public sector banks (PSBs), and other government entities. These bonds are typically AAA-rated, indicating high credit quality.
• The risk level of Edelweiss Bharat Bond ETF is moderate.
• Edelweiss Bharat Bond ETF (EBBETF0425) offers exposure to a structured and transparent approach to investment in high-quality bonds issued by government-related entities in India.
• It combines the benefits of bond investing with the convenience and liquidity of an ETF, making it a viable option for fixed-income investors seeking stability and income.
• Investors can expect predictable returns as the ETF primarily invests in fixed-income securities with known maturity dates and coupon payments.
• The ETF is suitable for investors seeking stable income and capital preservation over the investment horizon.
• Bond ETFs like EBBETF0425 can offer tax efficiency benefits, including potentially lower tax rates on capital gains and the possibility of indexation benefits for long-term capital gains

Asset Allocation & Portfolio Composition

• The fund allocation of Edelweiss Bharat Bond ETF comprises around 91.34% in debt and 8.65% in cash & cash equivalents.

Rating-wise fund holding:

• AAA Rating: 99.95%
• Cash Equivalent: 0.05%

3 Nifty Bharat Bond Index- April 2025 Constituents:

• SIDBI: 10.50%
• NABARD: 8.75%
• NHB LTD: 7.69%
• INDIAN OIL CORP: 7.44%
• HPCL: 7.09%
• REC LTD: 6.27%
• PFC LTD: 5.84%
• NABARD NCD RED 11-04-2025: 4.98%
• HUDCO: 4.56%

The scheme has delivered a return of 7.38% in the last one year as of August 14, 2024, compared to the benchmark returns of 7.14%.

Since its inception, Edelweiss Bharat Bond ETF has yielded a 5.23% annualised return.