The Cabinet today approved the launch of Bharat Bond Exchange Traded Fund or ETF, which would be be the first corporate bond ETF in the country. ETFs invest in a basket of securities representing an index, security or commodity and are traded on the stock exchange like any security listed on the exchange. Bharat Bond ETF will be a basket of bonds issued by central public sector enterprises and Will invest in a portfolio of bonds of CPSE, CPSU, CPFI or any other government organisation

Features of the Bharat ETF:

ETF to be basket of bonds issued by CPSE/CPSU/CPFI/any Govt organisation

Bonds to be tradable on exchanges

Small unit size 1,000

Transparent NAV (Periodic live NAV during the day)

Transparent Portfolio (Daily disclosure on website)

Low cost (0.0005%)

Fund to provide additional money for CPSUs, CPSEs and other government organizations

Each ETFs to have fixed maturity date

Will invest in a portfolio of bonds of CPSE, CPSU, CPFI or any other government organisation

For now, it will have two maturity series: 3 and 10 years

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