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Axis Mutual Fund on Tuesday launched an open-ended fund of ETF -- wherein the underlying investments comprise US treasury securities -- and is expecting to garner at least Rs 100 crore in the opening week. The seventh largest fund house expects to mop up at least Rs 500 crore from the US treasury dynamic bond ETF in the next one year. The fund house said the NFO, which will be managed by Vinayak Jayanath, will close on December 19. If redeemed/switched-out within one month from the date of allotment, the fund house will charge an exit load of 0.25 per cent, it said, adding that if redeemed after one month from the date of allotment, there will be no such charges. The ETF is benchmarked against the Bloomberg US intermediate treasury index, and has the primary investment objective of providing regular income by investing in units of overseas ETFs, B Gop Kumar, the chief executive of the company, said.
The government is looking to appoint a consultant to advise it on managing the Bharat Bond ETF, whose asset under management (AUM) has crossed Rs 50,000 crore since its launch in 2019. The Bharat Bond Exchange Traded Fund (ETF) comprises bonds of CPSEs, CPSUs, Central Public Financial Institutions (CPFIs) and other government organisations. These institutions have issued bonds and raised debt of Rs 33,400 crore since 2019, using the ETF platform. The Department of Investment and Public Asset Management (DIPAM) on Friday issued an RFP for appointing an advisor/consultant with experience and expertise in advising or who has been involved in a relevant capacity in the launch of an ETF/Debt ETF /Debt MF/ index linked fund/corporate bonds issuances. Merchant bankers/investment bankers/consulting firms/financial institutions; either individually or as a consortium; can bid to act as the advisor/consultant. The advisor will analyse, assist and advise on the possible monetisation of the de
India-focused offshore funds and exchange-traded funds (ETFs) witnessed a 9 per cent quarter-on-quarter decline in inflows to USD 803 million in the January-March period, mainly due to an uncertain global economic environment, according to a Morningstar report. However, this was the third consecutive quarter of inflow. Before that, such funds saw 17 quarters of net outflows in a row. India-focused offshore funds and ETFs are some of the prominent investment vehicles through which foreign investors invest in the Indian equity market. Going by the report, the category received a net inflow of USD 803 million during the January-March quarter of 2023, which was slightly lower than the net inflow of USD 884 million during the quarter ended December 2022. Flows into offshore funds are generally considered to be long-term in nature, whereas flows into offshore ETFs indicate predominantly short-term investments. Going ahead, investors would also look for cues from the scenario that unfold