Talking about investment: The third series of Bharat Bond ETF will open from tomorrow, understand here what it is and whether to invest money in it or not

The third series of Bharat Bond Exchange Traded Fund (ETF) will open for investment from December 3. This New Fund Offer (NFO) will open on December 3 and close on December 9. Through the third series of Bharat Bond ETF, the government can raise Rs 5,000 crore for central public sector undertakings. We are telling you about Bharat Bond ETF and how to invest in it.

What is Bharat Bond ETF?
Bharat Bond ETF is a type of exchange traded fund. In this, investments are made in the name of bonds in the shares of specific companies of the Central Government. These bonds are companies with Triple A rating of the Government of India. Bharat Bond ETF is managed by Edelweiss Mutual Fund. The minimum investor can invest in Bharat Bond ETF is Rs 1,000. Thereafter, investments can be made in multiples of Rs 1,000.

How much return will you get in this?
If you stick with it till maturity i.e. 2032, then you will get 6.87% return on investment. On the other hand, if you exit it in the middle, then you will get the return according to that time.

How can you invest in it?
The trading of Bharat Bond ETF takes place on the exchange. It invests its funds in bonds of government companies. It invests only in bonds of government companies that have a triple A rating. The maturity period of the bond is close to the maturity of the fund. It is necessary to have a trading and demat account for investing in this.

Do not expect attractive returns from this
Pankaj Mathpal, personal finance expert and founder and CEO of Optima Money Managers, says, “It is a kind of debt fund that will invest in AAA rated bonds of government companies. Debt investment provides stability to the portfolio but investors should not expect attractive returns from it. This fund will invest in bonds of government companies, so the possibility of credit risk is negligible here, but the change in interest rates by RBI will affect the return of this fund like other debt funds.

4% return in last 1 year
If we look at the last one year, the investment of 1 lakh in Bharat Bond ETF has been Rs 1.04 lakh. That is, in a year you have made a profit of 4%. Whereas in the same period, if you had invested in FDs of small banks or companies, you would have got a return of 6-8%. Click here for more information on Bharat Bond ETF