BHARAT Bond ETF — India’s first exchange-traded fund — is open for investment. Is it a money-making opportunity? Is it safe? We provide all the details here: This ETF is considered as a safe and guaranteed return option for investors. But, before making any investment decision, investors need to know some details in regard to the BHARAT Bond ETF, including proper investment strategy, how much return an investor can expect, income tax outgo or tax liability on capital gains, etc.
Speaking on BHARAT Bond ETF Mumbai-based tax and investment expert, Balwant Jain said, “If an investor doesn’t want to take any risk in debt mutual fund, then they can invest in BHARAT Bond ETF. In this investment option, one can asses one’s maturity amount as it has guaranteed return. This exchange-traded fund will invest in AAA-rated bonds only and it will have a maturity period of 3 years and 10 years. BHARAT Bond ETF expense ratio is 0.0005 per cent which is much lesser than other debt mutual funds.”
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Jain said that there is no minimum investment cap in BHARAT Bond ETF but during NOF investment, Rs 1,000 was the minimum amount fixed as a minimum investment. Those investors who have the lowest risk appetite can go for the BHARAT Bond ETF investment. If an investor gets NFO, then he or she will have to get 0.10 per cent exit load charges. On BHARAT Bond ETF interest rate Balwant Jain said, “For three years maturity, BHARAT Bond ETF yield is 6.70 per cent while for 10-year maturity bond yield is 7.60 per cent.”