BHARAT BOND ETF

What does ETF mean?

  • An ETF or exchange traded fund invests in specific shares or securities or stocks by tracking a certain index.
  • ETFs can be bought or sold through the stock exchange.

What is ‘Bharat Bond ETF’ ?

  • India’s first corporate bond Exchange Traded Fund. (ETF)
  • Listed on NSE & BSE, enabling buy & sale of its units.
  • Investment only in bonds issued by a select set of central government PSUs.

How many investment options BHARAT BOND ETF offers?

  • Tenure of 3 years Maturity i. e. April 2023. Expected returns 6.69% per annum.
  • Tenure of 10 years maturity i. e. April 2030. Expected returns 7.58% per annum.

What is cost of BHARAT BOND ETF?

It’s 0.0005% but inclusive of other costs it goes slightly beyond that.

How’s taxation impact on BHARAT BOND ETF?

After holding for three years, long term capital gain tax of 20% with indexation benefit against slab tax rate for FDs.

What are the advantages of investing in BHARAT BOND ETF?

  • High credit quality.
  • Low expense ratio.
  • Tax efficiency.
  • Can be purchased with a small amount of Rs.1000 up to a maximum investment amount of Rs 2 lakh.
  • Transparency with daily portfolio disclosures on an independent website against monthly by regular debt funds.