Bharat Bond ETF

Bharat Bond ETF, which tracks the Nifty Bharat Bond Target Maturity Indices, is a low-cost passive debt investment, India's first corporate bond exchange-traded fund (ETF).

Edelweiss AMC, which has a mandate to manage the ETF, launched two variants - Bharat Bond ETF April 2023 and Bharat Bond ETF April 2030 - in December with a maturity of three years and 10 years, respectively.

Features:

  • An Exchange Traded Fund (ETF) listed on NSE, which invests your money in public sector bonds.
  • Fixed maturity: The fund has 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 (NSE) anytime during the tenure of the fund.
  • You can earn relatively stable and tax efficient returns over the maturity period.
  • No Lock-in: Buy or sell during trading hours on the National Stock Exchange (NSE).
  • Low Cost: The fund is managed at a very low cost of 0.0005% p.a. (maximum Re.1 for Rs. 2,00,000 worth of investment).
  • The investment can start from as less as Rs 1,000.
bharat bond etf

It is set to roll out two more series in July that will mature in April 2025 and April 2031. The offer period is between July 14 and July 17.

The fund-raising target is Rs 3,000 crore with a green shoe option of Rs 11,000 crore.

BHARAT Bond Fund Of Funds:

If you  don't have a Demat account, you can invest in Fund of Funds. It will invest in the respective BHARAT Bond ETF. There will be two series of FOFs, both investing in ETFs of respective maturities.

Bharat Bond ETFs are an opportunity to invest in AAA-rated PSUs at low cost with predictable returns and equities-like liquidity.


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