Here's why you should invest in Bharat Bond ETF, according to Edelweiss AMC CEO Radhika Gupta

“It is ultimately under the mutual fund regulations - like a debt mutual fund you can redeem and subscribe any day. It is diversified, it is professionally managed, so it is like a mutual fund. It also enjoys the same tax benefits as a mutual fund," she said, adding that since investors are familiar with stocks, it trades on the exchange like a stock.

When asked about the benefits of investing in Bharat Bond ETF vs debt MFs she said, “It is an ETF, so it has an index. Secondly, this will be going to AAA PSUs, so credit quality is the biggest benefit. The biggest benefit is cost, at 0.0005 percent it becomes the cheapest debt fund product in the world probably and definitely the cheapest mutual fund product in India. So saving of 30-50 basis point  also is a big for an Indian investors.” It would be beneficial to investors if they hold to maturity, she added.

One other benefit is also that there is no breakage penalties. In the ETF there is no exit load at all. However, in the fund of fund structure there is a marginal exit load under one month. So effectively it is completely liquid and available on the exchange,” she further added.