CURRENT AFFAIRS

2023

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which AMC has recently launched 1st Corporate bond ETF?
A
Global Investment House
B
KB Kookmin Bank
C
Edelweiss Asset Management Company
D
Aditya Birla Sun Life Asset Management Company Ltd
Explanation: 

Detailed explanation-1: -Notes: Edelweiss Asset Management Company (AMC), a subsidiary of Edelweiss Capital Limited (ECL) has launched India’s 1st Corporate Bond ETF (exchange trade fund) called the Bharat Bond ETF. The ETF is a government initiative and Edelweiss AMC was given the mandate to design and manage the product.

Detailed explanation-2: -The BHARAT Bond ETF, India’s first corporate bond exchange-traded fund (ETF), is a central government initiative. This ETF only invests in ‘AAA-rated bonds of public sector companies. Edelweiss Asset Management is the fund manager of the BHARAT Bond ETF scheme.

Detailed explanation-3: -Bond ETFs are exchange-traded funds that invest in various fixed-income securities such as corporate bonds or Treasuries. Bond ETFs allow ordinary investors to gain passive exposure to benchmark bond indices in an inexpensive way.

Detailed explanation-4: -So, in essence, a Bharat Bond ETF is a type of target maturity fund, but one that tracks Nifty Bharat Bond Index, and has a low expense ratio and with the additional support of market makers. So, liquidity is not a challenge.

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