Bharat Bond ETF

For FOF, which works like a mutual fund scheme, you can apply directly or through your financial advisor.

There is no lock-in period. You can redeem your investments anytime you need in Fund of Funds (FoF) option like any of your other mutual fund investments. However, there is an exit load of 0.10% should you withdraw your investments before completion of 30 days. Post 30 days, there is no exit load.

If you hold your investments for more than 3 years, in ETF or FOF, it will qualify for LTCG with indexation like any other bond investments. In comparison, your interest income on deposits will attract marginal rate of tax (can be 30% if you are in highest bracket).

Any resident (including NRIs) individual and non-individual can invest in BHARAT Bond ETF. If you already have a Demat account, you can apply through your broking account

For online investments, Net Banking and UPI payment are two preferred modes. For Offline, please submit cheque along with the Application Form. We also have NEFT/RTGS option for which you will find the Bank Account details in the Application Form. You are requested to use your own bank account to avoid rejection of your application.

Applying is very simple. For ETF, you can place your order through your stockbroker. Demat account is mandatory for investing in ETF. Alternatively, you can invest by FOF without Demat account.

There are 'NO' assured returns. During the investment period, value of your investments and hence return on your investments can go up or down depending on market conditions, more importantly interest rates in the economy.

The short answer is No. You can sell your units like you buy/sell your shares through your stock broker.

Exchange-Traded Funds (ETF) are traded on exchanges (NSE). It can be purchased and sold through your broking account like any other traded securities e.g. shares, NCDs, etc. We have appointed Market Makers, who will provide quotes and liquidity in the absence of any other market participants.

Investing in any fixed-income securities has four major risks- Price risk, Credit Risk, Reinvestment Risk and Liquidity Risk. We have mitigated these risks in the following manner: Price Risk:  The investment has target maturity. This means the initial yield is locked if the investment is continued till maturity. However, if you withdraw/redeem before maturity, Price risk will remain. Credit Risk:  Each bond issuer is a Government of India's Public Sector Enterprise with a credit rating of AAA. Default risk, therefore, is minimal. Reinvestment Risk:  Coupons/interest received by the fund shall be reinvested in the similar underlying assets as that of the Index/portfolio. Liquidity Risk:  We have appointed a market maker to provide liquidity on the exchanges. Hence, an investor can buy/sell their units on exchange anytime they wish.

BHARAT Bond ETF will invest only in the bonds issued by the Government of India's Public Sector Enterprises (CPSEs). Even within CPSEs, it will invest only in those bonds, which has a credit rating of AAA. Such bonds have minimal default risk.

Where will you invest my funds? As the name suggests, funds will be invested in bonds issued by CPSEs/CPSUs/CPFIs and other Government organizations of AAA credit rating. Further, the bonds will be chosen such that its maturity co-terminates (as closely as possible) with the maturity of the fund.

Public Sector Companies An Exchange Traded Fund which will invest your money in Public Sector Bonds Fixed Maturity The fund will have a defined maturity date wherein you will receive your investment amount along with returns Exchange Traded You can buy or sell units of this fund on the exchange anytime during the tenure of the fund Passively Managed Bond ETFs are passive funds which will invest in constituents of underlying index. Exchange Traded Unlike traditional open-ended debt oriented schemes, these funds are traded on the exchange (on which it is listed) throughtout the day with a much lower cost compared to actively managed debt funds. Transparent Disclosures Bond ETFs closely track the index which makes the portfolio transparent.

Why invest in BHARAT Bond ETF? Higher Safety Money is invested in Public Sector bonds. Relatively Stable Returns You can earn relatively stable and tax efficient returns over the maturity period. Low Cost The fund will be managed at a very low cost of 0.0005% p.a. (maximum Re. 1 for Rs 2,00,000 worth investments)~ No lock-in Buy/Sell any time through to the stock exchange.

How does BHARAT Bond ETF work? Investment Strategy BHARAT Bond ETF will have fixed maturity period Follows Nifty BHARAT Bond ETF Index It will Invests in high quality 'AAA' rated bonds of Public Sector Companies Holds bond till their maturity and reinvest the coupons received Will invest 5% of its allocation towards G-Sec/TREPS for liquidity management purpose Benefits of Investing in BHARAT Bond ETF Stability and Predictability A bond like structure with fixed maturity provides predictable and stable returns at maturity. High Safety Investment in Public Sector bonds provide peace of mind Transparency Daily disclosure of portfolio constituents and live NAV periodically through the day No Lock-in Buy/Sell on exchange any time during trading hours or through AMC in creation size Lower Tax Enjoy the benefit of indexation, LTCG Tax at only 20% post indexation. * ( * Additional Surcharge applicable) Investment Options We have ...