new Delhi: Bharat BOND ETF is a new and attractive name in the field of investment in our country. Today the second installment of Bharat BOND ETF (Bharat BOND ETF second trench) has been released by the Government of India. The government wants to raise Rs 14000 crore from the market. The funds coming into the ETF will be invested only in bonds rated AAA of the public sector companies. The most important thing is that small investors can start investing in it with an amount of Rs 1000. These bonds are awarded with fixed deposit, but experts also say that they are better than fixed deposit. After all, what is the reason behind this?
For those investors who want to invest their money in a risk-free way for a long time, Bharat E.T.F bond is the best option. This bond (Bharat BOND ETF subscription) can be invested for at least 3 and not more than 10 years and investors will get full guarantee from the government. This will prove to be a better investment and because of this it can become the first choice of investors. Apart from this, there are many reasons why this bond can be included in the portfolio of people.
No Demat Account required- The common man can also invest in Bharat ETF bonds as there is no need for a Demat account to invest in it.
Tax Efficient – Bharat Bond ETFs will be taxed just like debt funds. Capital gains are taxed at the rate of 20% after indexation for holding debt fund investments for more than 36 months. At the same time, the interest on fixed deposits of the bank directly connects to your income. This way the tax is levied at the same rate in which you are in the slab, thus they will be more tax efficient than the fixed deposits of the bank.
Security These bonds are excellent in terms of security. In fact, due to the issuance of the government, the investment is completely secure, with the return on the risk is almost equal. But keep in mind that with investment in bonds, you cannot expect a healthy return.
How much will be the return The returns from investing in India bonds will depend on how long you hold the bonds. By keeping the maturity period, you can get an estimated return at the time of investment, but if you withdraw the money first, it can completely depend on Vidra Time Index, ie it can be both beneficial and harmful.