@Nsingh out of all the cash components eligible in zeordha , I found SGBs are better placed.
you will get mandatory 2.5% interest per annum + Gold return .
Also gold acts as complete hedge against the equity and in the longterm Gold gives better return than any of the liquid / debt funds.
@Nsingh @siva0 in fact I was going to refer to you about SGB. In each tranche, I’m investing some money in SGB and taking out money from (pledged) liquid funds. The only purpose to invest in liquid funds for me was to get cash-equivalent margin. If the gold prices remain so, or go down I’m planning to replace 2/3 of my cash equivalent pledged instruments (I.e liquid funds) to SGB.
Liquid bees is another option but useless in my opinion.
@Jason_Castelino i checked money market funds. They appear to have 0.5% more returns than liquid fund. Any more advantage in your opinion?
The options we have for cash component is Liquid funds, money market funds, Gilt funds, Government Securities and SGB.
So for the total cash component this is how I have taken exposure.
Whatever I have mentioned above, is solely based on my experience in FNO segment in 2 years. Please feel free to share your views.
Is there any advantage / disadvantage of buying Bharat Bond FOF Mutual fund vs buying the bharat bond ETF?
In Bharat bond etf the coupons are reinvested,can I see and track this reinvested part in Zerodha kite?right now i cannot see the reinvested part in kite @ShubhS9 @Bhuvan @nithin @siva-reddy
When the coupons are reinvested, the NAV goes up. That’s how the reinvestment works. If you still want to track this, ask the AMC or get the list of the underlying bonds and track their coupon payments.
The NAV and no of units have not yet increased when I checked my kite console and in Bharat bond they reinvest the coupons at the end of the FY which is march @Bhuvan but I received an email from edelweiss showing the interest for last FY.
Units don’t increase, the coupon payments show up in the NAV.
It has decreased actually @Bhuvan
Please have a look and help me @Bhuvan @nithin @siva-reddy
NAV doesn’t always go up 
It’s affected by interest rates, demand and supply. In the last 6+ months have been bad for bonds and bond funds because of rising inflation and the expectation of rate hikes. Like I mentioned, the coupons are added to the NAV. But if you still want a detailed breakdown, you’ll have to ask the AMC, they’ll provide it.
My original qty invested is 2428 units and current NAV is 25.8lakhs and If u closely observe the above screenshots u can see that the NAV is 25.8 lakh which is 2428*LTP rs1062.so there is no net increase in nav which means that the interest received is not reinvested yet.i contacted both edelweiss( the fund manager)and Zerodha to resolve the same and nobody could help.please help @Bhuvan @ShubhS9 @nithin @siva-reddy
It seems like you are unaware of how bonds and debt funds work. I’d suggest you read this chapter first. Interest is reinvested and add to the NAV, but at the same time the NAV can fall because of interest rates movements, inflation etc, which is why the price of Bharat Bond ETFs have fallen! You have invested in 2031 maturity ETF, which has the highest duration risk. In simple terms, longer the duration, higher the chance of a bond/ETF going up or down due to interest rate movements, inflation etc.
https://www.bharatbond.in/assets/images/downloads/pdf/Product_FAQs.pdf
Which means the interest is reinvested in the same underlying assets of the Bharat bond (which is gov companies ) but as a separate fund .so the qty in my portfolio won’t increase,it will remain the same but the NAV will reflect the gains in these investments…am I correct @Bhuvan
Which means the interest is reinvested in the same underlying assets of the Bharat bond (which is gov companies ) but as a separate fund .so the qty in my portfolio won’t increase,it will remain the same but the NAV will reflect the gains in these reinvestments…am I correct? @Bhuvan @nithin @siva-reddy @ShubhS9 @Bhuvan
What is money markets?
Do you mean treps where I sorta have idea that banks or RBI borrow money and give a govt bond and then buy back at a higher price or something.
Any example ETF or fund for money markets ??
ETFs ISINs
INF204KC1030
INF204KB1882
INF200KA1JT1
INF109KC14A8
Moneymarket mutual funds ISINs
INF846K01Q62
INF179KB1HU9
INF109K01R14
INF174K01MW2
INF204K01ZP3
INF789F01XV6
INF846K01R46
INF179KB1HR5
INF109K01TX1
INF174K01NA6
INF204K01VA4
If we hold Bharat bond etf till maturity can we get an assured return of 7% pa at the end? @nithin @ShubhS9 @Bhuvan my BBetf investments have started to bleed.i understand that this is a price fluctuation due to rising inflation but if returns are assured at the end of maturity I believe I can still hold them .please advise
Returns are assured at maturity if no PSU (that is part of the Bharat Bond index) defaults on its loan.
Bharat Bond is a decent investment but it is quite volatile as well. Frankly Gilt funds or constant maturity funds can be a better option.
Note: These are my personal views and not investment advice
