{"id":7147,"date":"2026-10-01T07:16:46","date_gmt":"2026-10-01T07:16:46","guid":{"rendered":"https:\/\/www.paytmmoney.com\/blog\/?p=7147"},"modified":"2026-10-01T07:21:18","modified_gmt":"2026-10-01T07:21:18","slug":"bond-etfs-in-india","status":"publish","type":"post","link":"https:\/\/www.paytmmoney.com\/blog\/bond-etfs-in-india\/","title":{"rendered":"Bond ETFs in India: Meaning, Types, Benefits, Risks &#038; How They Work"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Looking to understand how investors can access a basket of bonds through an exchange-traded fund? That is exactly what a bond ETF lets you do. Most people associate ETFs with shares, but Bond ETFs in India also provide access to diversified fixed-income securities through the stock exchange. Let us break it down in plain language.<\/span><\/p>\n<h2><b>What Is a Bond ETF?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A Bond ETF is a fund that holds a basket of bonds and trades on a stock exchange like a share. Investors typically buy and sell its units through a <a href=\"https:\/\/www.paytmmoney.com\/\">demat and trading account<\/a>.<\/span><\/p>\n<p><b>Key features:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holds many bonds in one fund<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Trades during market hours<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Usually tracks a bond index<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Spreads money across issuers and maturities<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Discloses holdings and prices openly<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In short, it combines diversified bond exposure with exchange-based trading.<\/span><\/p>\n<h2><b>Bond ETF India: The Market at a Glance<\/b><\/h2>\n<p><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.paytmmoney.com\/blog\/bond-etfs-vs-fds\/\"><span style=\"color: #00b0ff; font-weight: 600;\">Bond ETFs<\/span><\/a> in India have developed alongside efforts to deepen and broaden the country&#8217;s debt market.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Focus on government, PSU and high-quality corporate bonds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Index-based, passive construction<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open to retail and institutional investors<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rising use of target-maturity structures<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The bond ETF segment remains smaller than the equity ETF segment, although the range of products has expanded.<\/span><\/p>\n<h2><b>How Bond ETFs Work<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A bond ETF generally seeks to track the performance of a specified bond index. Here is the flow:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The fund buys the bonds that sit in the index.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <a href=\"https:\/\/www.paytmmoney.com\/blog\/etf-pricing-nav-inav-fair-value-explained\/\"><span style=\"color: #00b0ff; font-weight: 600;\">Net Asset Value (NAV)<\/span><\/a> reflects the value of the underlying securities, including applicable accrued interest, along with the fund&#8217;s assets, expenses and liabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Authorised participants create or redeem units.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You buy or sell units on the exchange.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The ETF&#8217;s market price may trade close to its NAV, with liquidity providers, arbitrage mechanisms and iNAV helping market participants assess its underlying value. Small gaps can still appear. <\/span><span style=\"font-weight: 400;\">Bond ETF returns can be influenced by income from the underlying bonds, changes in bond prices, expenses and tracking differences. Unlike a single bond, many ETFs rebalance as bonds mature.<\/span><\/p>\n<h2><b>Types of Bond ETFs in India<\/b><\/h2>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 14px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 30%;\">Type<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 35%;\">What it Holds<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 35%;\">Note<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Government (Gilt) ETF<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Central government securities<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Various maturity buckets<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Corporate or PSU Bond ETF<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">PSU or highly rated company bonds<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Adds credit exposure<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">SDL or Mixed Debt ETF<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">State development loans plus PSU or top-rated corporate bonds<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">A blended basket<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000; font-weight: bold;\">Target-Maturity ETF<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Bonds maturing in a set year<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Rate sensitivity falls over time<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><b>Bharat Bond ETF Explained<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The <a href=\"https:\/\/www.paytmmoney.com\/mutual-funds\/scheme\/edelweiss-bharat-bond-fof-april-2032-direct-growth\/inf754k01ny5\"><span style=\"color: #00b0ff; font-weight: 600;\">Bharat Bond ETF<\/span><\/a> is an example of a target-maturity bond ETF available in India.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invests in bonds issued by CPSEs, CPSUs, CPFIs and other government organisations, subject to the specific ETF series.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Follows a target-maturity approach with a fixed maturity date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tracks an underlying index based on factors such as credit quality and average maturity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invests in eligible bonds maturing on or before the ETF&#8217;s maturity date.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The initial Bharat Bond ETF series comprised AAA-rated bonds.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The launch was intended to broaden retail participation and support the development of India&#8217;s bond ETF market.<\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">(<\/span><\/i><b><i>Source:<\/i><\/b><i><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.pib.gov.in\/Pressreleaseshare.aspx?PRID=1594816\u00ae=48&amp;lang=2\"> PIB<\/a>)<\/span><\/i><\/span><\/p>\n<h2><b>Corporate Bond ETF in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A corporate bond ETF invests primarily in bonds issued by companies, with the underlying index determining the eligible securities.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Carries corporate credit risk<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holds a diversified set of issuers<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Follows an index<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Offers varying duration and maturity<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Its risk mix differs from a Bharat Bond ETF, so returns can behave differently too.<\/span><\/p>\n<h2><b>Bond ETF India Returns: What Moves Them?<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Interest rates:<\/b><span style=\"font-weight: 400;\"> Bond prices generally move opposite to rates.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Credit quality:<\/b><span style=\"font-weight: 400;\"> A downgrade can hurt valuations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Duration:<\/b><span style=\"font-weight: 400;\"> Longer duration means greater sensitivity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Expense ratio:<\/b><span style=\"font-weight: 400;\"> Costs reduce your net gain over time.<\/span><\/li>\n<\/ul>\n<p><b>Example:<\/b><span style=\"font-weight: 400;\"> Suppose you invest \u20b91,00,000 in an ETF with a duration of about 5 years. As a simplified duration illustration, a 1 percentage point rise in yields could correspond to an approximately 5% fall in bond prices for a portfolio with a duration of 5 years, all else being equal. This is only an illustration, not a forecast.<\/span><\/p>\n<h2><b>Benefits and Risks at a Glance<\/b><\/h2>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 14px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 50%;\">Benefits<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 50%;\">Risks<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Diversified debt exposure in one unit<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Interest-rate risk<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Trades during market hours<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Credit risk, especially in a corporate bond ETF<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Transparent holdings<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Liquidity risk<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Passive structure may offer relatively lower fund expenses<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Tracking error<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Helps balance an equity-heavy portfolio<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Market volatility<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><span style=\"font-weight: 400;\">Remember that a bond ETF spreads risk. It does not remove it.<\/span><\/p>\n<h2><b>Liquidity, Costs and Tracking Error<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Liquidity:<\/b><span style=\"font-weight: 400;\"> Depends on trading volumes. Thin volumes can make it harder to trade at your preferred price.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Costs:<\/b><span style=\"font-weight: 400;\"> Expense ratio, brokerage, bid-ask spreads and demat charges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Tracking error:<\/b><span style=\"font-weight: 400;\"> Small gaps from the index caused by costs, cash balances and rebalancing.<\/span><\/li>\n<\/ul>\n<h2><b>How to Buy Bond ETFs in India<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Open a demat account with a broker.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Search for the Bond ETF and review its underlying index.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check its maturity, duration, credit quality and expense ratio.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Review trading volume and bid-ask spreads before placing an order.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Place a buy or sell order through the stock exchange.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ETF units are held in your demat account.<\/span><\/li>\n<\/ul>\n<h2><b>Taxation of Bond ETFs in India<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Tax treatment for Bond ETFs depends on the scheme&#8217;s classification, underlying investments and date of acquisition. Applicable capital gains rules should be checked for the relevant financial year.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Many Bond ETFs are structured as debt-oriented schemes, but the applicable tax treatment should be confirmed for the specific ETF.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">They may qualify as specified mutual funds if they invest <\/span>more than 65%<span style=\"font-weight: 400;\"> in debt and money market instruments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For units bought on or after 1 April 2023, gains are treated as short-term capital gains. They are taxed at your income tax slab rate, whatever the holding period.<\/span><\/li>\n<\/ul>\n<p><b>Example:<\/b><span style=\"font-weight: 400;\"> You buy units for \u20b91,00,000 and sell for \u20b91,08,000. Your gain is \u20b98,000. In the 30% slab, tax would be about \u20b92,400 (before any cess).<\/span><\/p>\n<p><em><span style=\"font-weight: 400; font-size: 10pt;\"><strong>Note:<\/strong> Tax laws can change, so please check the latest rules or consult a tax professional.<\/span><\/em><\/p>\n<h2><b>Who Should Consider Bond ETFs?<\/b><\/h2>\n<p><b>Bond ETFs may be relevant if you:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Want passive, transparent debt exposure<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Have a moderate risk appetite<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Are comfortable trading on exchanges and holding a demat account<\/span><\/li>\n<\/ul>\n<p><b>You may want to consider other options if you:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Need assured income<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Cannot monitor exchange liquidity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Prefer mutual fund platforms with SIP features<\/span><\/li>\n<\/ul>\n<h2><b>Common Myths<\/b><\/h2>\n<div class=\"wp-block-table\" style=\"width: 100%; border: 1px solid #000000; margin-bottom: 20px;\">\n<table style=\"width: 100%; border-collapse: collapse; font-family: Arial, sans-serif; font-size: 14px; color: #000000; background-color: #ffffff;\">\n<thead>\n<tr style=\"border-bottom: 2px solid #000000;\">\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 50%;\">Myth<\/th>\n<th style=\"padding: 12px; border: 1px solid #000000; text-align: left; font-weight: bold; background-color: #ffffff; width: 50%;\">Reality<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Bond ETFs are guaranteed stable<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">They are market-linked<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">They work like fixed deposits<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Their value moves with bond prices<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Target-maturity ETFs carry no risk<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Rate and credit risks remain<\/td>\n<\/tr>\n<tr>\n<td style=\"padding: 10px; border: 1px solid #000000;\">All bond ETFs are alike<\/td>\n<td style=\"padding: 10px; border: 1px solid #000000;\">Portfolios differ widely<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A bond ETF offers an accessible route to diversified fixed-income exposure. Understanding how Bond ETFs work, the different structures available in India, what drives their returns and the risks involved can help investors evaluate whether they fit their financial goals and risk profile. Before investing, consider the ETF&#8217;s structure, duration, credit quality, liquidity, costs and applicable tax treatment.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-size: 10pt;\"><b><i>Disclaimer:<\/i><\/b><i><span style=\"font-weight: 400;\"> Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.<\/span><\/i><\/span><\/p>\n<p><span style=\"font-size: 10pt;\"><i><span style=\"font-weight: 400;\">Paytm Money Ltd. SEBI Reg. No. Broking \u2013 INZ000240532; Depository Participant \u2013 IN \u2013 DP \u2013 416 \u2013 2019, Depository Participant Number: CDSL \u2013 12088800. Trading and clearing member of NSE (90165, M52073), BSE (6707), MCX (57525), NCDEX (1315, M51110), and MSEI (85300). SEBI Reg. No. Research Analyst \u2013 INH000020086. Regd. Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi \u2013 110019. For complete Terms &amp; Conditions and Disclaimers visit:<\/span><\/i><a href=\"https:\/\/www.paytmmoney.com\/stocks\/policies\/terms\"> <i><span style=\"font-weight: 400;\">https:\/\/www.paytmmoney.com\/stocks\/policies\/terms<\/span><\/i><\/a><\/span><\/p>\n<h2><b>FAQs<\/b><\/h2>\n<div style=\"max-width: 100%; margin: 20px 0; font-family: -apple-system, BlinkMacSystemFont, 'Segoe UI', Roboto, Oxygen-Sans, Ubuntu, Cantarell, 'Helvetica Neue', sans-serif;\">\n<style>\n        \/* Hides default browser arrow\/triangle for a clean professional look *\/<br \/>        summary::-webkit-details-marker { display: none; }<br \/>        summary { list-style: none; outline: none; }<br \/>    <\/style>\n<p><!-- Question 1 --><\/p>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">1. What are Bond ETFs in India?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Bond ETFs in India are exchange-traded funds that invest in a basket of bonds and typically track a bond index. Their units trade on stock exchanges, allowing investors to access diversified fixed-income securities through a demat account.<\/div>\n<\/details>\n<p><!-- Question 2 --><\/p>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">2. How do Bond ETFs work?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Bond ETFs generally track a specified bond index by holding its underlying securities. Investors buy and sell ETF units on the stock exchange, while the NAV reflects the value of the underlying bonds, assets, expenses and liabilities.<\/div>\n<\/details>\n<p><!-- Question 3 --><\/p>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">3. What are the different types of Bond ETFs in India?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Bond ETFs in India can include government or gilt ETFs, corporate and PSU bond ETFs, SDL or mixed debt ETFs, and target-maturity ETFs. Their underlying securities, credit quality, duration and maturity can differ across schemes.<\/div>\n<\/details>\n<p><!-- Question 4 --><\/p>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">4. What are the risks of investing in Bond ETFs?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Bond ETFs are subject to interest-rate, credit, liquidity and tracking risks. Bond prices can change when market yields move, while corporate bond ETFs may face credit-related risks. Thin trading volumes can also affect the price at which units are bought or sold.<\/div>\n<\/details>\n<p><!-- Question 5 --><\/p>\n<details style=\"border-bottom: 1px solid #e2e8f0; padding: 15px 0; cursor: pointer;\">\n<summary style=\"display: flex; justify-content: space-between; align-items: center; width: 100%;\"><span style=\"font-weight: 600; color: #1a202c; font-size: 18px; text-align: left;\">5. How are Bond ETFs taxed in India?<\/span><br \/>\n<span style=\"font-size: 24px; color: #007bff; margin-left: 10px;\">+<\/span><\/summary>\n<div style=\"padding-top: 10px; color: #4a5568; line-height: 1.6; text-align: left;\">Tax treatment for Bond ETFs depends on the scheme&#8217;s classification, underlying investments and acquisition date. Certain debt-oriented schemes may fall under specified mutual fund rules. Investors should check the applicable capital gains provisions for the relevant financial year.<\/div>\n<\/details>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Looking to understand how investors can access a basket of bonds through an exchange-traded fund? That is exactly what a bond ETF lets you do. Most people associate ETFs with shares, but Bond ETFs in India also provide access to diversified fixed-income securities through the stock exchange. Let us break it down in plain language.<a href=\"https:\/\/www.paytmmoney.com\/blog\/bond-etfs-in-india\/\">Continue reading <span class=\"sr-only\">&#8220;Bond ETFs in India: Meaning, Types, Benefits, Risks &#038; How They Work&#8221;<\/span><\/a><\/p>\n","protected":false},"author":51,"featured_media":7148,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[858],"tags":[2798,3232,3234,3236,3233,3240,3242,3238,2243,3241,3237,3239,3243,3235,2193],"class_list":["post-7147","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-etf-blogs","tag-bharat-bond-etf","tag-bond-etf-india","tag-bond-etf-india-returns","tag-bond-etf-taxation-india","tag-corporate-bond-etf","tag-debt-etf","tag-fixed-income-etf","tag-gilt-etf","tag-interest-rate-risk","tag-nav-and-inav","tag-psu-bond-etf","tag-sdl-etf","tag-specified-mutual-fund","tag-target-maturity-etf","tag-tracking-error"],"_links":{"self":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/7147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/users\/51"}],"replies":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/comments?post=7147"}],"version-history":[{"count":0,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/posts\/7147\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media\/7148"}],"wp:attachment":[{"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/media?parent=7147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/categories?post=7147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.paytmmoney.com\/blog\/wp-json\/wp\/v2\/tags?post=7147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}