Edelweiss PSU debt ETF to use a target maturity structure


The cabinet has approved the launch of the Bharat Bond ETF
Unit size: Rs 1000 for the ETF. NAV of the FOF will be Rs. 10 during the NFO period but Edelweiss has yet announce the minimums.
Expense ratio: 0.0005 percent

NFO Date: 12th December to 20th December

The NFO of the Bharat Bond ETF (PSU Debt ETF) is set to open in December, probably 2 to 3 week. I am hearing December 19th as the NFO close date. Will keep the post updated. So, I was assuming that the AMC would launch multiple series for each year, but that’s not the case. There will be 2 series – 2023 and 2030. Essentially 2 ETFs, that will expire in the year 2023 and 2030. 3 years because of the indexation benefit. But still this is a really cool structure because of the defined maturity, you clearly know what the duration risk is.

Last year, in the budget, the govt had announced that along with CPSE and Bharat 22 ETFs, it wanted to raise money through a debt ETF. Post the bidding, Edelweiss Asset Management won the mandate to launch the debt ETF. We finally have details on how the ETF will be structured, and it’s quite interesting!

Clickity click, click!

DHFL Pramerica MF investor communication on DHFL exposure

Well, DHFL Pramerica Mutual Fund finally sent out a communique to all its investors on the DHFL fiasco. Remember DHFL funds fell anywhere between 10% to 50% post the default by Dewan Housing (DHFL). Luckily for the mutual fund, it’s exposure was not as high as others such as UTI MF and Reliance MF and the schemes were small in size. But the fall in percentage terms looks horrific.

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Dear investors, wake up and smell the bullshit. Mutual funds sahi nahi he!

I’ve been meaning to write this post for a while now but never got around to it. There has a small but growing chorus over costs and performance in mutual funds in India over the past couple of years. This is very heartening, but this is a very small or tiny group of sufficiently informed investors who have been speaking out on social media, blogs, etc about the virtues of passive investing.

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