The government had announced plans for debt ETFs in Budget 2019 and the first corporate ETF called Bharat Bond ETF, managed by Edelweiss Mutual Fund, was launched in December.
Investors today are aware of debt mutual funds, but ETFs and specifically bond ETFs are yet to gain traction in India.
Finance Minister Arun Jaitley in Union Budget 2018-19 announced plans for a debt ETF, following the success of equity ETFs such as CPSE ETF and Bharat-22 ETF.
Two advisory services firms -- Trust Investment Advisors Pvt Ltd and A K Capital Services Ltd -- had made presentations before the Department of Investment and Public Asset Management (DIPAM) on July 13.
This move will provide a level playing field across growth oriented funds and dividend distributing funds.