Offer Period - 12th Dec, 2019 - 20th Dec, 2019

BHARAT BOND ETF - Product Note

What is Bharat Bond ETF ?

Public Sector Companies Defined Maturity* Exchange Traded

An Exchange Traded Mutual Fund The fund will have a defined You can buy or sell units of this fund
which will invest your money in maturity date and at maturity you on exchange anyƟme during the
bonds issued by Public Sector will get back your investments tenure of the fund.
companies. proceeds along with returns.
*Please note that the Scheme (s) is neither Capital Protected nor Guaranteed Return Product

Why should you invest in BHARAT Bond ETF?

Safety Returns Low Cost

Your money will be invested in You can earn stable return with The fund will be managed at a very
bonds of Public Sector Companies lower tax over the maturity period low cost – 0.0005%

Combine features of bonds and mutual funds

Fixed maturity date

Mature like a Bond Lower interest rate risk
Predictable returns if held Ɵll maturity

Listed on exchange
Trade like an ETF Market Makers to support liquidity
Unit CreaƟon/RedempƟon through AMC

Investments across CPSEs/CPFIs/Statutory Bodies

Diversify like a Fund Single issuer limits
Invests only in AAA rated Public Sector Company Bonds
BHARAT BOND ETF - Product Note

Investment Strategy
ETF will have a fixed maturity date like a bond
ETF maturiƟes will be – April 2023 and April 2030
ETF will follow NiŌy BHARAT Bond Index
ETF will invest only in AAA rated Bonds issued by Public Sector Companies maturing on or before the
maturity of the ETF
ETF will hold bonds Ɵll their maturity and coupons received will be reinvested
Up to 5% allocaƟon towards G-Sec / CBLO for liquidity management

Nifty BHARAT Bond Index

Index will follow a Target Maturity structure
Index to follow a buy and hold strategy where exisƟng bonds are held Ɵll maturity
Issuers Eligibility
 Should be issued by a CPSE, CPFI or Statutory body domiciled in India
 Should have conservaƟve credit raƟng of AAA
 Should mature in the 12 months period preceding the maturity date of the index
Weight allocaƟon based on outstanding debt amount of the issuer in the parƟcular period
Issuer weights to be capped at 15%^
Any issuer that ceases to be a CPSE, CPFI or Statutory body or the raƟng is downgraded below AAA, shall be
removed from the index on the next rebalancing date
^ At the Ɵme of rebalancing

Index Constituents:
NIFTY Bharat Bond Index - April 2030 cons tuents as on 3rd Dec, 2019
ISSUER Ra ngs Capped Weights
NATIONAL HIGHWAYS AUTHORITY OF INDIA AAA 15.00%
INDIAN RAILWAY FINANCE CORP. LTD. AAA 15.00%
POWER GRID CORP. OF INDIA LTD. AAA 15.00%
REC LIMITED AAA 12.72%
NTPC LTD. AAA 11.63%
INDIAN OIL CORP. LTD. AAA 8.00%
NUCLEAR POWER CORP. OF INDIA LTD. AAA 6.61%
POWER FINANCE CORP. LTD. AAA 6.51%
NLC INDIA LTD. AAA 3.93%
EXPORT-IMPORT BANK OF INDIA AAA 2.84%
NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT AAA 1.48%
NHPC LTD. AAA 1.27%
Grand Total 100.00%

YTM - 7.52%
BHARAT BOND ETF - Product Note

NIFTY Bharat Bond Index - April 2023 cons tuents as on 3rd Dec, 2019
ISSUER Ra ngs Capped Weights
REC LIMITED AAA 15.00%
NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT AAA 15.00%
POWER FINANCE CORP. LTD. AAA 15.00%
HOUSING & URBAN DEVELOPMENT CORP. LTD. AAA 11.84%
EXPORT-IMPORT BANK OF INDIA AAA 8.00%
POWER GRID CORP. OF INDIA LTD. AAA 7.24%
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA AAA 7.00%
NTPC LTD. AAA 6.67%
HINDUSTAN PETROLEUM CORP. LTD. AAA 4.87%
NATIONAL HIGHWAYS AUTHORITY OF INDIA AAA 3.85%
NUCLEAR POWER CORP. OF INDIA LTD. AAA 2.43%
INDIAN RAILWAY FINANCE CORP. LTD. AAA 1.88%
NHPC LTD. AAA 1.21%
Grand Total 100.00%

YTM - 6.59%

Features compared to other investment avenues:

Debt Mutual Individual Fixed Small saving

Bond ETF Deposit
Funds Bonds schemes
Returns
Predictability

Liquidity

Defined
Maturity

Access/ Ease of Use

Final Distribu on
at Maturity
Tax Efficiency
– Indexa on
BHARAT BOND ETF - Product Note

Indexa on Example:
3 Yr Tradi onal BHARAT Bond ETF 10 Yr Tradi onal BHARAT Bond ETF
Investment April 2023 (4 Indexa on) Investment April 2030 (11 Indexa on)

Invested Amount 100,000 100,000 100,000 100,000

Assumed Rate of Return 6.59% 6.59% 7.52% 7.52%

Indexa on NA 4 NA 11

Value on Maturity 123,995 123,995 212,255 212,255

Indexa on Value - 116,986 - 153,945

Taxable Amount 23,995 7,009 112,255 58,310

Tax* 7,198.53 1,401.85 33,676.58 11,662

Post Tax Value 116,797 122,593 178,579 200,593

Return 4.72% 6.23% 5.75% 6.94%

 Assumed Tenure for TradiƟonal Investment and Bond ETF (4 IndexaƟon ) 3.37 Years and Tenure for TradiƟonal Investment and
Bond ETF (11 IndexaƟon) 10.38 Years.
 Assumed Rate of InflaƟon is 4%.
 *TradiƟonal investment Taxed at 30% & BHARAT Bond ETF Taxed at 20% post indexaƟon
 Above is only for illustraƟon purposes. Please consult you TAX Advisor before making any investment