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Informist, Thursday, Mar. 6, 2025

MUMBAI – Edelweiss Mutual Fund has decided to merge BHARAT Bond ETF – April 2025 with BHARAT Bond ETF – April 2030, the fund house said in a newspaper notice on Thursday. The merger will be effective Apr. 15.

BHARAT Bond ETF – April 2025 is an open-ended target maturity exchange traded fund which invests in constituents of Nifty Bharat Bond Index - April 2025. It has a moderate interest rate risk and a relatively low credit risk. According to Value Research, the scheme has garnered assets worth INR 100.64 billion as on Jan. 31. Since its launch in 2020, the scheme has given returns of 5.53%.

BHARAT Bond ETF – April 2030 is part of the same Nifty BHARAT Bond Index Series, the nature of the underlying constituents being AAA rated bonds issued by government owned entities. The scheme will mature in April 2030. "Given the current interest rate scenario, the merger may help investors of the merging Scheme to take advantage of the prevailing higher interest rates if they continue to stay invested in the transferee scheme until its maturity date," according to the notice.

BHARAT Bond ETF – April 2025 will be delisted two working days before the maturity date of Apr. 15, for which necessary circulars will be issued by the exchanges. Since all the units are in dematerialised mode, unit holders of the scheme who do not have any objection to the proposed merger and wish to remain invested, need to submit their consent to the asset management company on or before Apr. 8 by 1500 IST.

Units of those unitholders who do not provide their consent to the merger will be redeemed at applicable net asset value on the maturity date, and the proceeds will be paid to investors within T+3 working days.

Unitholders of BHARAT Bond ETF – April 2030 who wish to exit the scheme can do so at the prevailing net asset value between Mar. 10 and Apr. 8. As on date, the exit load in the transferee scheme is nil.

The Securities and Exchange Board of India on Feb. 27 gave its no objection to the aforesaid merger. Investors of the scheme that will be merged will be able to avail long-term capital asset status on their investments and benefit from reduced tax liability at the time of redemption from the transferee scheme, provided the combined holding period is greater than 12 months, according to the notice.  End

Reported by Kshipra Petkar

Edited by Ashish Shirke

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