After successful commencement of Bharat 22 ETF (Exchange Traded Fund for investment in Equities), Union Cabinet approved launch of Exchange Traded Fund for investment in Bonds under the name of Bharat Bond ETF on 4th Dec 2019 to deepen the bond market and bring in retail participation in this space. This Bond ETF will provide additional money for PSUs and it will be first of its kind. Let’s first understands what Bond ETF are?

Bond ETFs are Exchange Traded Funds which invests in basket of bonds. These are just like Bond Mutual Funds which are tradable / listed in stock market. Exchange tradability provides extra liquidity to such bonds. Now, how it will benefit if one makes investment through this 1. Maturity, Minimum Investment & Expense Ratio :

Initially Bharat Bond ETF will have two maturity 3 & 10 years and will be listed on the exchanges. Hence, it can be bought and sold like shares in the stock market.

In terms of minimum investment, retail investors can participate & invest with amount starting from Rs.1000/-. This will be advantageous for small investors who want to diversify their portfolio with Fixed Income Instruments.

Expense ratio / Cost Structure associated are miniscule at 0.0005%. 2.Risk to default is negligible:

Post IL&FS default, many investors lost their money which was invested in Fixed Income instruments either through MF or directly. So it becomes important to know where this fund is investing.

Bharat Bond ETF will invest in bonds issued by Central PSUs or any other government organization bonds. Sovereign backing & tradability in exchange will provide safety and liquidity respectively for investor’s money. 3.Taxation Benefit :

Coupon received from Bharat Bond ETF will be taxed as per investor’s tax slab, but it will provide tax benefit due to indexation process (adjustment of purchase price of investment for inflation) which reduce effective tax rate on capital gains.

Long-term capital gains (holding period of over 3 years) on bond funds are taxed at 20% after indexation.Should Invest or Not? With above discussed rewards, Bharat Bond ETF is one of its kinds and can act as topping on cake in respect to one’s portfolio. So one should allocate some proportion of their investments / savings in this instrument.

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In order to enhance investor awareness, transparency and ease of access to information relating to securities holdings, the Depositories, in co-ordination with SEBI , have upgraded their respective investor applications (link of mobile application mentioned below) providing a consolidated, bird’s eye view of investors’ holdings in securities markets.

The above mentioned applications of CDSL and NSDL has following features;

Internet-enabled services like Speed-e (NSDL) empower a demat account holder in managing his/her securities ‘anytime-anywhere’ in an efficient and convenient manner and submit instructions online without the need to use paper. These facilities allows Beneficial Owner (BO) to submit transfer instructions and pledge instructions including margin pledge from their demat account. The instruction facilities are also available on mobile applications through android, windows and IOS platforms.

Account opening through digital mode, popularly known as “On-line Account opening”, wherein investor intending to open the demat account can visit DP website, fill in the required information, submit the required documents, conduct video IPV and demat account gets opened without visiting DPs office.

As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the SEBI/Exchange’s website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.

SEBI: https://investor.sebi.gov.in/ BSE: https://www.bseipf.com/investors_education.html NSE: https://www.nseindia.com/invest/how-to-invest-in-capital-market MCX: https://www.mcxindia.com/Investor-Services/investor-awareness

We believe that an educated investor is a protected investor!!!

Due to maintenance activity, all our trading/web application(s) shall be unavailable for access from Saturday, September 30, 2023, 06.00 AM to Monday, October 02, 2023. Please note that our system/application(s) will resume from Tuesday, October 03, 2023.

Investors are requested to note that Stock broker M/s Goldmine Stocks Pvt Ltd is permitted to receive money from investors through designated bank accounts only named as Up streaming Client Nodal Bank Account (USCNBA). Stock broker (M/s Goldmine Stocks Pvt Ltd) is also required to disclose these USCNB accounts to Stock Exchange. Hence, you are requested to use following USCNB accounts only for the purpose of dealings in your trading account with us. The details of these USCNB accounts are also displayed by Stock Exchanges on their website under “Know/ Locate your Stock Broker.

In case of investor can deposit funds in your trading account, after successful payment funds shall be automatically updated in your trading account in few minutes. If you do not see funds in your account within the timelines and/or any other query related to funds transfer please contact to our account department via email on accounts@goldmine.co.in

Source: SEBI | Study – Analysis of Profit and Loss of Individual Traders dealing in Equity F&O Segment