Debt ETF

ETF Name	Open	High	Low	Prev. Close	LTP	CHNG	%CHNG	Volume	Value	52W H	52W L
Nippon India ETF Nifty 1D Rate Liquid BeES	1000	1000.01	999.7	1000	999.99	-0.01	0	1071830	1000	1030	970
CPSE ETF*	90	90	86.8	88.43	87.8	-0.63	-0.71	954018	10	106.6	56.1
LIC Nomura MF G-Sec Long Term ETF	26.46	26.59	26	26.46	26.5	0.04	0.15	11842	10	27.97	23.3
SBI-ETF 10 Year GILT	239.53	240.55	239.52	240.5	239.99	-0.51	-0.21	19658	10	267	218.35
Bharat Bond ETF - April 2030	1438.4	1438.4	1416.6	1429.33	1430.69	1.36	0.1	8070	1000	1469.7	1269.55
Bharat Bond ETF - April 2031	1280.51	1281.9	1280	1280.44	1281.85	1.41	0.11	3572	1000	1316.65	1165.02
Bharat Bond ETF - April 2025	1254.79	1254.8	1248.87	1254.75	1254	-0.75	-0.06	1506	1000	1392.5	1145.63
Motilal Oswal 5 Year G-Sec ETF	59.7	61.2	57.42	57.97	57.94	-0.03	-0.05	980	10	59.99	53.15
Axis AAA Bond Plus SDL ETF-2026 Matur. Reg. Growth	12.5	12.5	11.7	12.15	12.19	0.04	0.33	16626	1	14	9.5
Bharat Bond ETF - April 2032	1206.75	1206.91	1205.01	1206.74	1205.01	-1.73	-0.14	8024	1000	1325.38	1085.69

What are Debt ETFs?

Debt ETFs allow investors to realize returns on their investments through exposure to fixed-income securities. Debt ETFs in India are sometimes referred to as bond ETFs due to their high exposure to bonds as the underlying asset. Debt ETFs in India are passively managed and track an underlying index's performance that compromises a basket of debt instruments. They increase returns by combining the benefits of debt instruments with the flexibility and simplicity of the equity market and mutual funds. Similar to other types of ETFs, debt ETFs in India are also listed on various stock exchanges.

Who should invest in a debt ETF?

Debt ETFs in India, much like equity ETFs with stocks, consist of various debt securities such as debentures and government bonds with different maturity periods. Since these ETFs are managed passively, they suit investors who prefer not to constantly monitor their investments. They are especially appealing to those wanting to allocate part of their capital to debt instruments at a lower cost. Additionally, investors aiming to diversify their portfolios and offset potential losses in the equity market find debt ETFs to be an excellent tool. These ETFs are easily tradable on stock exchanges, providing a straightforward investment option for those not interested in directly purchasing debt securities.

Benefits of Investing in debt ETFs

Investors aiming for a robust portfolio wisely allocate a portion of their capital to purchase debt ETFs. Opting for the best debt, ETF brings several advantages:

Diversification: Debt ETFs channel funds into a mix of fixed-income instruments, such as government bonds, offering effective diversification. The inclusion of securities with varying maturity periods helps reduce risk while enhancing returns.

Low-cost: Passively managed, debt ETFs aim to replicate the underlying index's performance, resulting in lower maintenance costs. With significantly lower expense ratios compared to actively managed funds, investors can maximize returns without significant costs eating into profits.

Liquidity: Listed on stock exchanges, debt ETFs boast unrestricted trading sessions. High demand often leads to increased liquidity, facilitating easy buying and selling for investors whenever they desire.

Transparency: Debt ETFs invest in the same debt securities as the chosen underlying index, ensuring transparency. Daily disclosure of the ETFs' portfolios enhances transparency, allowing investors to be fully aware of their investment exposure.

How to Invest in Debt ETFs?

Investing in Debt ETFs through 5Paisa is a straightforward process, similar to other exchange-traded funds. To get started, you'll need a Demat account or a trading account, easily opened through platforms like 5Paisa. Here's a simplified guide on how to invest in Debt ETFs:

Step 1: Account Login or Registration

Step 2: Explore and Search

After logging in, search for your preferred debt ETF scheme within the platform. You can also explore the "All Mutual Funds" section to find the best debt ETFs available in India.

Step 3: Selection and Information

Choose the best debt ETF in India based on your criteria. On the fund page, delve into additional details like the underlying index, debt securities, fund managers, and asset allocation.

Step 4: Investment Type Selection

Opt for your preferred investment type, whether SIP (Systematic Investment Plan) or Lumpsum, for the chosen debt ETF.

Step 5: Payment

Complete the payment process to finalize your investment. Once done, expect a confirmation text and email from 5Paisa, affirming your successful investment in the selected debt ETF.

Frequently Asked Questions

How to buy debt ETFs in India?

To purchase debt ETFs in India, follow a process akin to buying shares. Log in to your 5Paisa account, find the debt ETF you wish to purchase, and proceed by placing an order.

What is the difference between Debt Mutual Funds and Debt ETFs?

The major difference between debt mutual funds and debt ETFs in India is that debt mutual funds in India are actively managed, with fund managers making decisions. On the other hand, debt ETFs are passively managed, tracking an index without active fund manager involvement.

What is the difference between Fixed Deposits and debt ETFs?

The primary difference between Fixed Deposits (FDs) and debt ETFs lies in payment structure. FDs offer monthly/quarterly interest payments to investors, whereas debt ETFs do not provide interest payments.

Are debt ETFs better than investing in debt securities directly?

Whether debt ETFs or direct investment in debt securities is better depends on individual goals, capital, and financial knowledge. Direct investment requires extensive financial knowledge, while debt ETFs offer simplicity, diversification, and the advantage of not having to constantly monitor positions.