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Bharat Bond ETF

Bharat Bond ETF New Fund Offer

Bharat Bond NFO is closed. It Will Opens for Buying & Selling from 2 Jan 2020.

Complete Details, Taxation, Portfolio & Feature of Bharat Bond ETF (Click Here To Apply)

  • Bharat Bond ETFBharat Bond is a pure Debt Fund. Its equity counterpart is Bharat 22 Fund.
  • Bharat Bond ETF is proposed to start on 12 Dec 2019.
  • It will have 2 schemes – a 3 Year ending 1 April 2023 & a 10 year variant with maturity on 1 April 2030.
  • There is no entry load to invest. Also, there is no exit load or lock-in period.
  • Bharat Bond ETF is an Index Fund so both options will mimic the exact portfolio created by National Stock Exchange. Here is the 10 year & the 3 Year portfolio.
  • Both variants a simple in working. Means, the valuation of bonds will be determined on a weighted basis and shall be visible through NAV.
  • The ETF bonds will return the principal & accumulated growth on maturity. Will not distribute dividends in between.
  • Although the NFO is slated this month, the bonds or units will be available for buying & selling post this period via exchange.
  • When you buy or sell via exchange the price will be as per the exchange market price. NAV & Price can be different.
  • The expense ratio will be 0.0005%. Lowest ever! Seen in India.
  • Very Transparent. As one can see NAV & price on daily basis. One can also check portfolio.
  • It is diversified like a mutual fund scheme as 3 years will have a 15 & 10-year plan has 11 securities to start with.
  • These companies have AAA rating, hence the investment is low risk.

Bharat Bond Taxation

Since it is a Mutual Fund, the taxation of Debt Fund will apply.

So if you sell units before 3 years, you will pay Short Term Capital Gain Tax on the gains. This is currently as per your tax bracket. Simple, the gains will add to your income of the year in which you redeemed or exited the bonds.

If you kept & sold after 3rd year, Long Term Capital Gain Tax will apply. This means you will not only get Indexation benefit, but the tax rate will be lower which 20% with indexation benefit.

Since bond mature in April, the investor gets one more indexation. For a 3-year bond, one gets 4 indexations & for 10 one can get 11 indexation benefits. Look at the illustration below.

(Click Here To Apply)

How to Apply in Bharat Bond

Option One:

Investors holding Demat account can invest in the respective BHARAT Bond ETF through their stockbrokers or online.

If you do not have a DEMAT ACCOUNT Click Here to Open the LOWEST COST DEMAT & TRADING ACCOUNT

Option Two:

Through Fund of Fund (FOF) Route. BHARAT Bond FOFs will invest in the respective BHARAT Bond ETF. The minimum investment is Rs 1000. Call Us Email or WhatsApp for Application Form & Home Service.