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 hereâs 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
Capitals Gain on Bharat Bond is treated same as Debt Mutual Fund.
What will be the taxation on this ETF?
If sold within 3 years, it will be considered as short term and STCG as per your income slab will be applicable. If sold after 3 years it will be considered as long term and LTCG of 20% with indexation is applicable.
Hi, it is mentioned the maximum investment for retail investor is Rs.2 lakhs. In liquid bees there is no such conditions of maximum investment. Am I missing something in this point?
You can invest as much as you want, there are no restrictions.
The reply was in response to query about pledging limit. That too isnât applicable anymore.
In Liquidbees, the interest (dividend) are deposited in demat on monthly basis.
In bharatbond etf, it is said that the interest will be paid at the time of maturity.
Suppose for example, I buy one bond
Buy value= Rs.1000
At the time of maturity, the NAV is say Rs. 1150.
Will the ETF pay me back (upon maturity)
(A) Rs. 1150 plus the interest
or
(B) only Rs. 1150?
Regards,
Karthic
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For Bharat Bond, whatever is the final NAV at maturity will be paid out. Final NAV will include the face value + accrued interest.
When will Bharat Bond April 2032 ETF be available for trading in exchanges?
This is already listed on the exchanges. Trading Symbol: BBETF0432.
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Thank You.
I was searching as âEBB*******â,
are these bondsâ ETFs considered liquid for collateral?
No. Bharat Bond ETF isnât considered as cash component.
good question .
please answer for it by Zerodha team