BQ Big Decisions: Should You Sign Up For The Bharat Bond ETF?
BloombergQuint’s Big Decisions podcast gets you the insights you need to make big money decisions with confidence.
The country’s first corporate bond exchange-traded fund was launched on Thursday by Edelweiss Asset Management and it remains open for subscription till next Friday. It will comprise 12 bonds issued by companies owned by the central government, all bearing the highest possible credit rating—‘AAA’.
Edelweiss AMC said it proposes to raise as much as Rs 15,000 crore in the new fund offer phase, in which the ETF will be sold in two targeted maturities—maturing in 2023 and in 2030.
The Bharat Bond ETF, as it is called, has been likened to a fixed deposit because of the high degree of safety associated with the sovereign backing that the underlying bonds bear. But, there are major differences that you need to bear in mind if you’re thinking of subscribing to the offer, particularly with respect to taxation.
On this BQ Big Decisions podcast, BloombergQuint speaks to Arvind Rao, certified financial planner and SEBI-registered investment advisor, to find out who will benefit most from investing in the newly launched ETF.