One is ETF which is listed and traded on exchange, other is like a mutual fund. ETF is bought at price quoted on exchange which can be different to NAV where as on coin one will get at NAV and sell at NAV. There is no upper cap on capital.
Thanks for reply just follow up question, now this etf is trading around 1052 more than 5% return in 5 months and it’s annual return expectation is 6.5-7.5%. so if I invest now will I get only 1.5-2.5% return in next 7 months or there is some other dimension to this.
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Is Bharat bond (similar to Mutual fund) allowed to be pledged for collateral?
Yes they are
On Coin, you are buying the fund of fund of which the underlying is the ETF. On Coin, you are directly buying the ETF.
Where can we see returns in Bharat Bond ETF?
The actual returns you can check on Moneycontrol, Valueresearch etc. But the indicative yield can be checked here
https://www.bharatbond.in
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Does the 2 lakhs per scrip pledge limit also apply for Bharath Bond?
Is there really any such limit for pledging on Zerodha ?
For customers using Online DIS Consent the limit is 2 lakh’s per scrip and 10 lakh’s per day. For customers who have provided POA there is no limit.
@siva @mohitmehra what happens to Bharat bond etf after their maturity ? Will the amount be deposited in my a/c ? How is this amount calculated ? Is it like no. of Bharat bond etf held in demat a/c multiplied by LTP ? If they’re reinvesting all dividend back to the scheme, will get additional units on each dividend reinvestment as in MFs ? Pls clear
Yep
Will reflect in the NAV.
As on today the price of two etf traded on nse as below.
EBBETF0430 : 1100
EBBETF04323: 1079.24
When these were launched, I think both priced at 1000. Now if I want to buy then which price I have to buy? If I want to sell which price I have sell?
I case of LIQUIDBEES it is simply straight forward i.e buy at 1000 and sell at 1000 always and your regular dividend will take care of your returns, but in case of Bharath Bond it is no straight forward.
How a buyer/seller calculate/derive typical/right/ideal price for buy/sell in order to get promised returned at the end of maturity?
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This is way better than the Liqiuidbees structure. In Bharat Bond ETF, the interest is reinvested. In case of keeping track of the dividends and seeling fractional units is a bit of an hassle.
Anyways, 2 things you need to know when you want to buy and sell Bharat Bond ETF.
1. The indicative yield
This gives you a sense of how much you can make. You can check this on the Bharat Bond ETF site (https://www.bharatbond.in).
2: iNAV
You also need to look at 2 things when buying an ETF - the price and the NAV or iNAV (indicative net asset value).
Price is what you see on Kite. This is determined based on the demand and supply of the ETF units.
The NAV or iNAV tells you the fair value of the ETF, which you can check the AMC site. Basically, NAV is an indication of how much you should be paying. Now in most liquid ETFs, the NAV and the price are closeby, but in some case due to illiquidity or market volatility, they may vary significantly. Which is why, whenever you are buying an ETF, you always have to look at the NAV/iNAV before placing an order.
So here’s the iNAV of the Bharat Bond ETF. One more thing, NAV is declared at the end of the day while iNAV is live and updated every 15sec or so.
Notice the 1-2 Rs difference, this is common because of demand and supply issues. You can even avoid pay that premium of Rs 1-2 by instead opting to invest in a Fund of Fund on Coin.
Unlike ETFs which have live intraday prices. FOFs are always allotted at the end of the day NAV which is the accurate fair value of the underlying ETF.
Hope this explains it.
Explained above.
BUT , FOFs would be costlier as compare to the underlying ETF . because FOF would also be keeping some margin to earn for themselves ! AM I right ?
Will the newly launched Bharat Bond Series II (EBBETF0430/EBBETF0431) be allowed to pledge for margin?
If yes, by when can we expect the feasibility in Zerodha?
Thank you
I want to know capital gain on bharat bond etf is treated as equity or debt, i sell after 1 year, do i get 1 lakh exemption on profite LTCG