Bharat Bond ETF kicks off this week; check date, investment, return, taxation, other details
- Best Investment Advisor in India
- Business
- Commodity Market
- Currency
- Equity Market
- FII based calls
- Foreign Markets
- Genuine stock tips provider
- Intraday trading tips
- Intraday trading tips & Strategies
- Investment adviser
- Investments
- IT Industry
- Most accurate stock tips provider
- News
- NSE F&O
- Operator based calls
- Politics
- Portfolio Management Services
- promotions
- SEBI Registered advisory company
- Stock Market
India’s first PSU corporate bond ETF issue– Bharat Bond ETF –will kick off for subscription on December 12. The government on Monday said that the public offer has received SEBI’s approval. The issue will remain open for subscription till December 20th. The offer size for the issue is likely to be Rs 7,000 crore, with a green-shoe option of Rs 8,000 crore. The ETF will invest in 3-year and 10-year government securities. NABARD, HUDCO, NHAI, PFC, REC, PGCIL, IRFC, NHPC, NTPC will be the firms borrowing through Bharat Bond ETF. Through this public offer, retail investors will have an opportunity to invest in quality PSU debt for as low as Rs 1,000. “We are giving the retail investor an option to earn more than the fixed deposit rate, and also participate in the development of the country. Bharat bond ETF will be the first corporate bond ETF in the country,” FM Nirmala Sitharaman said in a press briefing last week.
The FM explained that each bond ETF will be priced at Rs 1,000 per unit. Retail investors can invest with the minimum investment amount of Rs 1,000 and in multiples of Rs 1000 thereafter, subject to maximum investment amount of Rs 2,00,000 (Rupees Two Lakhs Only). Notably, the weight of bonds in the index will be based on total outstanding amount of each issuer. Single issuer weight will capped at 15%, Edelweiss AMC, which is managing the issue said in a FAQ guide. The bond ETF will also be listed on the exchanges. Accordingly, investors can buy or sell shares using three methods– via stock exchange, through the market makers or directly through the AMC. The Bharat Bond ETF will have a transparent NAV (periodic LIVE NAV during the day). Bharat Bond ETF will have a fixed maturity period, like close-ended mutual funds and the units will be also be listed on stock exchanges.
Notably, there are ‘NO’ assured returns for Bharat Bond ETF. “During the investment period, value of investments can go up or down depending on market conditions, and are dependent on interest rates movements in the economy. However, if investors stay invested till maturity of the ETF then return can be inline with the yield of the portfolio at the time of investments,” Edelweiss AMC explained. According to Zerodha, the yield would be around 7%.
Explaining the tax implications of investing Bharat Bond ETF, Edelweiss AMC said that as it will be investing in Fixed Income securities, Debt Taxation will be applicable to investors. Accordingly, investors should brace for Short Term capital Gain (STCG) taxed at marginal rate and Long Term Capital Gain (LTCG) for redemption after 3 years, which are taxed 20% post Indexation Benefit. The ETF will have a very low cost (0.0005%) expense ratio.
- To know more about us or our services,
- kindly visit www.buildcaps.com
- Best Investment adviser in India & Genuine Stock advisory company.
#1 in list of SEBI registered advisory companies #1 stock adviser in India 100% Sureshot operator calls Best Intraday tips provider Best Investment adviser in India Best stock advisor Best stock advisor websites Best stock tips provider Fund Operator calls Genuine Account Management services Genuine SEBI registered advisory company Genuine stock market tips provider India no 1 stock advisory company India’s top rated advisory company India’s top rated Stock tips provider Intraday calls in stock future Intraday calls in stock market Intraday Jackpot tips Intraday Sureshot tips Intraday Sureshot tips provider Intraday tips Intraday tips in F&O Intraday trading in share market Intraday trading techniques Intraday trading tips Intraday trading tips & Strategies Intraday trading tips in stock market Investment adviser Investments Most accurate investment adviser in India Most Accurate stock tips provider Most reliable stock tips provider no.1 stock tips provider Operator based calls Operator based intraday stock tips Operator based intraday tips Operator based options tips Operator based sureshot calls Reliable stock advisory firm Reliable Stock tips provider Reliable stock tips provider in stock market SEBI Registered advisory company SEBI registered best intraday tips provider SEBI registered intraday tips provider SEBI registered investment adviser SEBI registered Research Analyst Stock market Stock market news Strategy for Wealth Management and Financial planning Top rated Portfolio Management services Top rated SEBI registered stock advisory firms
Archives
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- March 2023
- February 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
Categories
- Best Investment Advisor in India
- Business
- Commodity Market
- Currency
- Equity Market
- FII based calls
- Foreign Markets
- Genuine stock tips provider
- Intraday trading tips
- Intraday trading tips & Strategies
- Investment adviser
- Investments
- IT Industry
- Most accurate stock tips provider
- News
- NSE F&O
- Operator based calls
- Politics
- Portfolio Management Services
- promotions
- SEBI Registered advisory company
- Stock Market
- Uncategorized
Calender
M | T | W | T | F | S | S |
---|---|---|---|---|---|---|
1 | 2 | 3 | ||||
4 | 5 | 6 | 7 | 8 | 9 | 10 |
11 | 12 | 13 | 14 | 15 | 16 | 17 |
18 | 19 | 20 | 21 | 22 | 23 | 24 |
25 | 26 | 27 | 28 | 29 | 30 |