Bharat Bond ETF: Just avoid it – not a good investmentšŸ‘Ž

Bharat Bond ETF should be avoided currently and one can consider buying it later at a cheaper price from the stock exchange when the bond yield increases to more than 8%. Right now just investĀ in anyĀ Liquid Debt Mutual Fund.

What is Bharat Bond ETF?

ETF stands for Exchange Traded Fund and one can simply buy/sell them on NSE/BSE like any other listed shares. This ETF will be India’s first corporate Bond ETF which will be invested in AAA PSUs. It has two variants – one will mature in 3 years (appx. 6.6% p.a.) and the other one in 10 years (appx. 7.5% p.a.)

Reason for avoiding –

Currently, bond yield is 6.7% p.a. which is very low and I expect it will increase in the coming years. If you invest right now in this ETF then you will end up getting a lower return when the bond yield increases.Ā 

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