{"id":1572,"date":"2019-12-05T07:22:16","date_gmt":"2019-12-05T07:22:16","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/12\/05\/funding-cpses-bharat-bond-etf-to-attract-rs-10000-crore\/"},"modified":"2019-12-05T07:22:16","modified_gmt":"2019-12-05T07:22:16","slug":"funding-cpses-bharat-bond-etf-to-attract-rs-10000-crore","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/12\/05\/funding-cpses-bharat-bond-etf-to-attract-rs-10000-crore\/","title":{"rendered":"Funding CPSEs: Bharat Bond ETF to attract Rs 10,000 crore"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden size-full wp-image-1784846\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-325.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-325.jpg 660w, https:\/\/images.financialexpress.com\/2019\/12\/cats-325-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/12\/cats-325-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/12\/cats-325-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"size-full wp-image-1784846\" src=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-325.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-325.jpg 660w, https:\/\/images.financialexpress.com\/2019\/12\/cats-325-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2019\/12\/cats-325-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2019\/12\/cats-325-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">The bonds will be available for two maturities \u2014 three years and 10 years. The first tranche will comprise AAA-rated bonds.<\/span><\/figure>\n<\/div>\n<p>The Bharat Bond Exchange Traded Fund (ETF), a basket of bonds issued by government-owned enterprises, could see collections to the tune of Rs 10,000 crore, market experts said. The product has been crafted to cater to both wholesale investors \u2014 pension funds, insurance companies and provident funds \u2014 and retail investors.<\/p>\n<p>The returns on the 3-year ETF are expected to be in the range of 6.5-6.6% while that on the 10-year ETF could be approximately 7.5%-8%. The bonds will be available for two maturities \u2014 three years and 10 years. The first tranche will comprise AAA-rated bonds.<br \/>\u201cSince insurance companies and provident funds are looking for long-term assets, this product would suit them,\u201d A Balasubramanian, MD&amp;CEO, Aditya Birla Sunlife AMC, said, pointing out that ETF limits are typically outside the underlying bond limit in any scheme. The appetite from mutual funds may not be very strong, he said.<\/p>\n<p><img decoding=\"async\" class=\"lazy lazy-hidden alignnone size-full wp-image-1784843\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-324.jpg\" alt=\"\" width=\"138\" height=\"396\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-324.jpg 138w, https:\/\/images.financialexpress.com\/2019\/12\/cats-324-70x200.jpg 70w, https:\/\/images.financialexpress.com\/2019\/12\/cats-324-93x267.jpg 93w\" sizes=\"(max-width: 138px) 100vw, 138px\"\/><\/p>\n<p><noscript><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1784843\" src=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-324.jpg\" alt=\"\" width=\"138\" height=\"396\" srcset=\"https:\/\/images.financialexpress.com\/2019\/12\/cats-324.jpg 138w, https:\/\/images.financialexpress.com\/2019\/12\/cats-324-70x200.jpg 70w, https:\/\/images.financialexpress.com\/2019\/12\/cats-324-93x267.jpg 93w\" sizes=\"(max-width: 138px) 100vw, 138px\"\/><\/noscript><\/p>\n<p>Given the minimum deno-mination for investments is Rs 1,000, and that the bonds are backed by the government, retail investors are expected to buy the ETF especially the shorter-maturity product. \u201cTypically retail investors are unwilling to commit money for a long period like 10 years,\u201d market experts said.<\/p>\n<p>Finance minister Nirmala Sitharaman said on Wednesday investors can buy or sell the ETFs either on the exchanges, through market makers or through the AMC. Investors who sell ETFs will be eligible for indexation benefits while paying capital gains tax.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] The bonds will be available for two maturities \u2014 three years and 10 years. The first tranche will comprise AAA-rated bonds. The Bharat Bond Exchange Traded Fund (ETF), a basket of bonds issued by government-owned enterprises, could see collections to the tune of Rs 10,000 crore, market experts said. The product has been crafted [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1573,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1572"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1573"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}