Cloud over PSU bonds, yield-altering events: the unknown unknowns that Bharat Bond ETF has to tackle (2024)

Cloud over PSU bonds, yield-altering events: the unknown unknowns that Bharat Bond ETF has to tackle (1)

Cloud over PSU bonds, yield-altering events: the unknown unknowns that Bharat Bond ETF has to tackle (2)

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Concept by Pravin Palande and Muhabit ul haq

Synopsis

The Bharat Bond ETF experienced some teething troubles when it got listed on the exchanges earlier this month. While Edelweiss Mutual Fund has taken care of most of the issues, there are still many unknown unknowns that the fund will have to deal with.

New financial instruments are often shackled by ‘known unknowns’ and ‘unknown unknowns’ when they start off. Ask the ones who have rolled out products in the Indian markets. While most have competently figured their way out of the known unknowns, negotiating through the unknown unknowns has been arduous. Edelweiss Mutual Fund’s Bharat Bond ETF is a case in point. Before the exchange-traded fund, or ETF, was listed on BSE and NSE in the new year,

BY

Pravin Palande

9 mins read

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Cloud over PSU bonds, yield-altering events: the unknown unknowns that Bharat Bond ETF has to tackle (2024)

FAQs

What is the interest rate on a Bharat bond? ›

1. Current NAV: The Current Net Asset Value of the BHARAT Bond ETF - April 2030 as of Apr 22, 2024 is Rs 1,353.98 for Growth option of its Regular plan. 2. Returns: Its trailing returns over different time periods are: 7.17% (1yr), 5.77% (3yr) and 7.24% (since launch).

Are Bharat bonds tax free? ›

What is the current taxation on “Bharat Bond ETF” and “Bharat Bond FOF” for both STCG and LTCG? Similar to debt funds, STCG will be taxed as per slab rate and LTCG will be taxed at 20% without indexation benefit.

What is the yield of Bharat Bond ETF 2032? ›

Quantitative Indicators as on 18-Apr-2024
Scheme NameBHARAT Bond ETF - April 2032
Description (if any)Target maturity debt ETF
Annualised Portfolio YTM7.52%
Macaulay Duration6.12 Years
Residual Maturity7.87 Years
1 more row

What is the exit load of Bharat Bond? ›

Minimum SIP Investment is set to 100. Minimum Lumpsum Investment is 100. Exit load of 0.1% if redeemed wirhin 30 days.

Is Bharat bond cash equivalent? ›

Bharat Bond isn't considered as a cash equivalent. Deepak_Choudhary1: What all do zerodha accept as cash components? Only Liquid Funds and Liquid ETF's are considered as cash components.

Which government bond has highest interest rate? ›

List of the 10 Best Government Bonds
Bond IssuerCoupon RateYield
Tamil Nadu Generation and Distribution Corporation Limited9.72%13.50%
Karnataka State Financial Corporation9.24%12.08%
West Bengal State Electricity Distribution Company Ltd9.34%11.95%
Indel Money Limited0%11.88%
6 more rows
Jan 24, 2024

Which bond has highest interest rate in India? ›

High Yield Bonds
Bond NameCouponYield
EARLYSALARY SERVICES PRIVATE LIMITED11.750013.2500%
NEOGROWTH CREDIT PRIVATE LIMITED12.550012.0000%
INDIABULLS HOUSING FINANCE LIMITED8.850011.7500%
ESAF SMALL FINANCE BANK LIMITED11.000011.3500%
5 more rows

Which bonds pay the highest interest rate in India? ›

Invest in safer portfolio without compromising returns.
Bond nameRating
14.87% ICL FINCORP LIMITED INE01CY08224 UnsecuredUnrated
8.80% L&T FINANCE LIMITED INE027E07AP2 SecuredINDIA AAA
18.50% SUGEE ONE DEVELOPERS PRIVATE LIMITED INE483Y07306 SecuredUnrated
12.10% IIFL FINANCE LIMITED INE866I08170 UnsecuredICRA AA
16 more rows

What is the maturity of Bharat bond? ›

Tenure for traditional investments and NIFTY BHARAT Bond Index - April 2033 (11 Indexation) is 10+ yrs.

Which bonds pay high interest? ›

Our picks at a glance
RankFundYield
1Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)6.40%
2T. Rowe Price High Yield Fund (PRHYX)7.02%
3PGIM High Yield Fund Class A (PBHAX)7.22%
4Fidelity Capital & Income Fund (fa*gIX)6.16%
5 more rows
Mar 15, 2024

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