What’s in it for you: 10 things to know about bond ETFs

Here are 10 things you need to know about the new product:

• 1

  Edelweiss AMC, which will manage Bharat Bond ETF, will roll out 2 tranches a year

• 2

  You can invest in these ETFs with a minimum of Rs 1,000

• 3

  These funds will offer only growth option, and no dividend option

• 4

  ETF to let you participate in India’s economic growth with lesser risk

• 5

  The ETF will be listed on stock exchanges to allow ready liquidity

• 6

  These ETFs will hold high quality AAA- and AA-rated securities of PSUs to ensure investor safety

• 7

  Going by benchmark performance, these ETFs are projected to deliver 50-140 basis points more return that 10-year govt bonds

• 8

  You can invest for short term, 3 years, or long term, 10 years

• 9

  Bond ETFs will have defined maturity, meaning they will mature at a fixed term

• 10

  You can invest in bond ETF for assured returns, which will be better than bank FDs