Sun Global Investments has teamed with Zyfin Holdings to launch the first Indian fixed income ETF available to UK investors.

LAM Global ZyFin India Sovereign Enterprise Bond Ucits ETF will seek AAA opportunities in government-backed corporate bonds. Indian sovereign owned enterprises (SOEs) are corporations ‘of national interest’ in which the government owns a stake in excess of 51%.

The fund aims to provide international investors with access to yields of around 7%, targeting bonds supported by real underlying securities with an average duration of 10 years.

Capitalising on the ongoing reformation of the Indian market under Narendra Modi, the ETF will primarily invest in infrastructure developments in the transport, financial and energy sectors.

Tracking the ZyFin India Sovereign Owned Enterprise Bond Index, the fund will be listed on the London Stock Exchange from 19 November.

Mihir Kapadia, Sun CEO and Wealth Manager cover star (pictured), said: “The listing of this fund reflects our view that Indian nominal yields are among the highest in the world.

‘With India expected to overtake China next year as the world’s fastest growing economy, we are confident that new investments innovations such as ours will help reinforce its growth trajectory.’