Cash component Collateral

[Jason_Castelino]

Should you invest in Bharat Bond ETF?

The options we have for cash component is Liquid funds, money market funds, Gilt funds, Government Securities and SGB. Liquid funds returns are on a lower side. Gilt funds are volatile SGB funds do not have enough liquidity if I have to buy in secondary market. So I will lose out on a small part because of bid ask Spread. I do not like to buy it directly at the time of issue because I have to wait for 2 months to pledge them. So there is an opportunity foregone. Also if I want to sell these u…