InvestorQ : Which type of investors should invest in Bharat Bond ETFs?
Aishwarya Nimbalkar made post

Which type of investors should invest in Bharat Bond ETFs?

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3 months ago
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All retail investors can invest in Bharat Bond ETFs. However, this bond could be of utmost importance to investors in the higher income bracket. This is because, the features of this ETF make it tax-efficient and fairly liquid, which is crucial for investors whose income is above Rs10 lakhs. This offering boasts of tax advantages that can be helpful to such investors.

Since this is primarily a debt fund, investors can avail of the indexation benefit. Long term capital gains (LTCG) are taxed at 20%, which lowers tax liability and enhances post-tax returns. Furthermore, since this product has targeted maturity, it can be linked to various goals, like buying a house, child’s education, etc. And given that it invests in government bonds, there is an assurance of safety.

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