Here are some of the major highlights of the Bharat Bond ETF.

· It will be a basket of bonds issued by CPSEs and PSU and will be backed by a government guarantee.

· The basket will consists essentially of bonds that are AAA rated to begin with and may later look at AA rating bonds.

· The Bharat Bond ETF will have a fixed maturity of 3 and 10 years and will be listed and traded on recognized stock exchanges with separate indices for both.

· Bharat ETF will track an index that is yet to be constructed but it will be an attempt to replicate the tenure of the bonds, the duration of the bonds and credit quality. The NSE will take care of index monitoring

· In terms of the load, the Bharat Bond ETF will have the lowest cost of just 0.0005% cost structure makes it the cheapest available investment option. However, liquidity will be the challenge

· Long-term capital gains held for more than 3 years will be taxed at 20% after considering the benefit of indexation. This will substantially reduce the tax liability.