InvestorQ : What is the Bharat Bond ETF and what are the tranches in Bharat Bond ETFs?
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What is the Bharat Bond ETF and what are the tranches in Bharat Bond ETFs?

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Rohan Bhadani answered.
1 month ago
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The Bharat Bond ETF is based on CPSE corporate bonds and is aimed at helping the deepening the bond market in India. The Bharat Bond ETF invests in the debt of central public sector enterprises and has seen high interest from investors in the past two tranches.

How many tranches of Bharat Bond ETFs have been announced?
To date, two tranches of Bharat Bond ETFs have been announced. The first tranche of Bharat Bond ETF raised Rs 12,400 crore in December last year with maturity options of three and 10 years. the second tranche in July was oversubscribed more than three times, collecting about Rs 11,000 crore. The maturity options were five years and 12 years. The ETF invested in constituents of the Nifty Bharat Bond Indices, consisting of AAA-rated public sector companies.

Is there going to be the third tranche of Bharat Bind ETFs?
The government is working towards launching the third tranche of Bharat Bond ETF. The government may consider including AA-rated bonds in the future which will further help in this direction. The government has set a disinvestment target of Rs 2.1 lakh crore for this financial year, of which Rs 1.2 lakh crore is expected from strategic divestments.
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