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.