Bharat Bond ETF

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.