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Bharat Bond ETF Features, Benefits – Review

Shitanshu Kapadia
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1
Bharat Bond ETF Features, Benefits – Review

Bharat Bond ETF

Bharat Bond ETF is India’s first debt-based ETF. The government of India has recently approved this fund proposal. Bharat Bond ETF will have a fixed maturity period like a fixed deposit. Retail investors will see this fund as an alternative to a fixed deposit.

As it is a new product, most of the investors are not aware of this product. Here is a complete guide explaining What is Bharat Bond ETF? Features of Bharat Bond and important tips about investing in this fund.

Also Read – 20 Best Mutual Funds for Investment in 2020-21

What is Bharat Bond ETF?

Bharat Bond Exchange Traded Fund is a mutual fund that invests your money in the bonds issued by the Government of India owned companies as well as corporate unit bonds. It will be a diversified fund consist of various public sector company bonds. The main objective here is to give facility to the retail investor to invest in bonds & to provide liquidity in the corporate bond market. It will also serve as an extra source of funding for government-owned companies.

This fund will be managed by Edelweiss Asset Management. This fund will have two maturities – three years and ten years. Key features and benefits of this ETF are given below.

Key Features and Benefits of Bharat Bond ETF 

  • This Fund has a maturity of 3 years and 10 years and it will be traded on the stock exchanges. It will be like close-ended funds.
  • This maturity period is known as a series. This means funds have two maturity series. Each series have a separate index for tracking.
  • This fund will invest money in the bond of state-run companies and other government entities.
  • ETF to have basket of CPSE Bonds.
  • It will initially have all AAA rated bonds.
  • This fund will be available in the small unit size of Rs.1000.
  • The fund has a low expense ratio of 0.0005% which is lowest in the industry.
  • As the expense ratio is very low we can say that it is the cheapest debt product in the world.
  • Bond ETF will provide safety, liquidity and predictable tax-efficient returns.
  • Long term capital gain holding period of 3 years and above will be taxed at 20% after indexation.
  • One can get periodic live NAV during the day for transparency.
  • The portfolio holding of the fund will be disclosed online on the website. This will help investor in knowing fund investment.
  • Bharat Bond ETF will invest in AAA-rated companies and bonds.
  • ETF will track the underlying index on a risk replication basis.  

How to invest in Bharat Bond ETF?

To invest in this ETF, you will require a demat account. You can buy/sell bond ETF using the following methods.

  • As a retail Investors can directly purchase this fund via exchange during trading hours using an online platform.
  • If you are a large investor you can buy & sell funds via AMC. The transaction value will be 25 Crore or above. 

Bharat Bond ETF – Comparison 

Let’s compare this ETF with Bank FD, Open-ended Debt mutual funds and Fixed Maturity Plans.

A fixed deposit has varying maturity and taxation is as per tax slab one can expect a very low return in the fixed deposit. Whereas in Bharat Bond maturity is fixed 3 years or 10 years. The return is slightly higher. As far as risk is concern Bharat bond is slightly risky compared to FD.

If we take a look at open-ended debt fund, this fund has no minimum tenure or maturity. The return and risk are comparable in open-ended debt funds as well as Bharat Bond. No difference in a tax benefit.

A fixed maturity plan has a maturity of 3 years to 5 years whereas in ETF maturity is 3 years or 10 years. The return can be slightly higher in the Bharat Bond.

The comparison table of Bharat Bond ETF with other products is given below.

Bharat Bond ETF Investment

Should you Invest? – Review 

First of all, the Bharat Bond ETF is a unique fund launched by the government with the lowest expense ratio. It can be purchased with a small amount of Rs.1000. This fund is expected to provide higher returns compared to a fixed deposit.

The investment in this fund is safe as underlying bonds are issued by the government-owned companies and CPSE. This fund provides tax-efficient returns and it can be traded on the exchange easily. So, the liquidity of this fund is higher.

Bharat Bond ETF is a very good investment option for conservative investors. If you are planning to invest in the fixed deposit you should look at this fund for the investment. However, it has fixed maturity and it’s prone to interest rate change risk. If you are a low-risk investor, you can allocate a small portion to this fund.

What is Commodity Trading? How does it work?

Shitanshu Kapadia
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0
What is Commodity Trading? How does it work?

commodity trading

Commodity Trading – You must be aware of making money via stock trading do you know that you can also make money via commodity trading? Well, commodity trading is done in the commodity market. A commodity market is one of the oldest markets. In good old days, commodities were exchanged with other commodities using the barter system and it was location-specific. Now, we have electronic exchanges for doing commodity trading. In this post, we will deep dive and take a bigger look at commodity trading and How it works?

What is Commodity?

A commodity is defined as basic raw material, goods, agriculture, mining items that can be bought and sold in the market. Commodities are extracted from natural state and brought up to minimum grade for the sale in the market. There is no extra value added to them by the producer. 

In general commodities are things or items which are used in daily lives. Examples of a commodity are tea, coffee, gold, silver, wheat, chana, soya oil, copper, zinc, lead, crude oil, natural gas etc. All these items are traded in the commodity market.

What is Commodity Trading?

Commodity Trading means buying and selling of commodities in a short period of time for making money. Trading of the commodity is done in the same manner as that of equity/shares. The trading in commodities take place either in the spot market or future markets. 

There are four major commodity trading exchanges in India. Details are given below.

  1. Multi Commodity Exchange – MCXNational Commodity and Derivatives Exchange – NCDEX
  2. National Multi Commodity Exchange – NMCE
  3. Indian Commodity Exchange – ICEX

There are four different types of Commodity category where trading takes place. 

  1. Metals – Silver, Gold, Platinum, and Copper
  2. Energy – Crude oil, Natural gas, Gasoline, and Heating oil
  3. Agriculture – Corn, Beans, Rice, Wheat, etc.
  4. Livestock and Meat – Eggs, Pork, Cattle etc.

Also Read – 10 Best Small Trading Business Ideas

How Commodity Trading Works?

Commodity trading is the trading of a commodity where buy and sell activity of various commodities described above takes place. The trading takes place based on current and future date. 

Commodity trading works based on supply and demand. If demand is high and supply is less price will increase. On the other hand, if supply is high and demand is less price will fall. For example, a price of gold future is affected by the wedding season or situation of gold mining companies. The price of oil futures is affected by the political situation in the oil-producing countries. Let’s try to understand this by one example.

Example –

A trader purchases a gold future contract with a minimum contract size of 100 gm at Rs.75000 on MCX. He pays margin money 4% which is equal to Rs.3000.

If on next day gold price trade at Rs.72000, the difference of Rs.3000 will be debited from the trader account. Suppose gold trade at Rs.76000, the difference of Rs.1000 will be credited to the trader’s account. 

If you want to become a commodity trader you need to follow the step given below.

  1. Open commodity trading account with a broker. This account is required for doing online trading of commodities. You need to submit an application form along with all necessary documents to open trading account.
  2. Once your account is open, you need to deposit margin money. The margin amount is 5-10% of the contract value. In addition to margin money, additional money is also required this is to recover money in case you face losses. 
  3. Once this formality is over, you can place an order. You need to understand market dynamics and supply-demand of a commodity before placing an order. Once you finalize on commodity, lot and contract value you can inform broker for the placement of order. Alternatively, you can also place an order at an online platform. The contract will be owned by the trader and it will be marked to market at the end of each trading day.
  4. At the end of each day, settlement take place where commodity price is decided. The price of settlement is compared with order price and the difference is either credited or debited based on which the order was placed. 
  5. The contract can be terminated by taking physical delivery of goods. The trading can also be closed by taking a reverse trade position. 

Benefits of Commodities Trading 

There are multiple benefits of commodity trading. A few of them are given below. 

  • One can get an online and offline trading platform for doing trading
  • Transparency and fair price discovery without a scope of manipulation
  • One can get protection against inflation as it act as hedging tool against price fluctuation. 
  • It has wide participation across India
  • You can get the option of physical delivery by closing the trade
  • The contract size is standardize while doing a trading
  • The price is linked to global markets

Over to you –

Please note that commodity trading is a very good profession. However, it is risky. You need to understand the concept of supply, demand, and inflation before starting trading. Initially track and follow a single commodity once you get the confidence you can start trading.

How to Get a Personal Loan with a Low Interest Rate?

Shitanshu Kapadia
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0
How to Get a Personal Loan with a Low Interest Rate?

A personal loan is any purpose loan. You can use this loan for any purpose like medical emergency, marriage expenses, renovation of a home, paying for a dream holiday, etc. It is one of the easiest ways to get money from the market. The interest rate offered on a personal loan is generally higher compared to any other loan. However, if you have an urgent requirement for money, a personal loan is a very good option. Services like UK Quick loans also offer fast approvals, making funds accessible when time is critical. You must be aware that many banks sanction and disburse the loan within 24 hours of your application. Even a few banks and lending organizations give pre-approved loan offers.

So, if you are planning to avail of a personal loan and want to reduce a cost by getting a low interest rate here are proven ways.

personal loan low interest rate

Also Read – 10 Best Instant Personal Loan Apps for Quick Cash Requirement

How to Get a Personal Loan with a Low-Interest Rate?

Maintain a Good Credit Score

A credit score plays a crucial role in deciding your loan amount, interest rate, and processing charges. You need to maintain or improve your credit score by repaying your debt over a period of time. Your credit score should be above 750. A credit score above 750 means a very good chance of getting one of the best loans for low-interest rates. There are multiple ways to maintain and improve your credit score. A few of them are listed below.

  • Pay bills on time
  • Keep your credit card balance low
  • Limit your application of new credit card and loans
  • Maintain a credit utilization ratio
  • Check your credit report at regular intervals

Employment History

Your employment history also plays a vital role in reducing the personal loan interest rate. If you are maintaining good job stability it affects your credit score positively. In addition to your employment history, a few lending companies also look at factors such as repayment capacity, income, and profile to decide on a personal loan interest rate.

Credibility of Employer

The credibility of an employer is one of the important factors in reducing personal loan interest rates. If you are working with blue-chip companies or multinational companies your chance of getting a personal loan with a low interest rate is high. The reason is the employer is able to provide steady and higher job security with a stable income.

Repayment History

Repayment history is crucial for getting a personal loan at a lower rate. Pay your credit card bill on time. Pay the EMI of your loan on time. If your repayment history is good you get a better chance to negotiate interest rates with lenders.

Monthly Income

It may sound unfair but your monthly income also matters a lot when deciding personal loan interest rates. Your monthly income should be high to get a good deal on a personal loan.

Relationship with Bank

Your relationship with the bank also matters a lot while applying for a personal loan. If you are a loyal customer of a bank and maintain all your transactions with the same lender or bank, your bank/lender is likely to offer a personal loan with low interest rate.

Check Alternatives

You should check for other alternatives when seeking a personal loan with a low-interest rate, exploring alternatives like commercial hard money loans can offer distinct advantages. While traditional personal loans often come with stringent eligibility criteria and lengthy approval processes, commercial hard money loans provide a viable option for individuals seeking quicker access to funds. These loans, secured by commercial real estate, offer competitive interest rates and flexible terms, making them an attractive option for borrowers with substantial assets or businesses in need of capital. By leveraging the value of commercial properties, borrowers can secure financing with favorable terms, enabling them to meet their financial needs while minimizing interest expenses.

Smart Strategies to Get the Lowest Possible Rate

Now let’s dive into the good stuff—how to actually score that low-interest personal loan.

Keep That Credit Score High

It’s your golden ticket. Aim for 750 or above. Here’s how:

  • Pay EMIs and credit card bills on time

  • Keep credit utilization under 30%

  • Avoid too many loan applications at once

Compare, Don’t Settle

Never go with the first offer you get. Use online platforms like BankBazaar, PaisaBazaar, or your bank’s loan calculator to compare rates from multiple lenders.

Negotiate Like a Pro

Yes, you can negotiate your interest rate! Especially if:

  • You’re a long-term customer

  • Your credit score is excellent

  • You have pre-approved offers

Credit Cards vs. Personal Loans—Which Is Cheaper?

FactorCredit Card LoanPersonal Loan
Interest Rate24–36% p.a.9–18% p.a.
Repayment FlexibilityLowHigh
Loan TenureShortLong

Best Banks for Low-Interest Personal Loans in 2025 (So Far)

BankStarting Interest Rate (p.a.)
HDFC Bank10.50%
ICICI Bank10.75%
SBI9.60%
Axis Bank10.49%
Kotak Mahindra Bank10.25%

FAQs

1. How can I improve my credit score quickly to get a lower interest loan?

Start by paying off your credit card dues in full, avoid new loan inquiries for a while, and don’t miss any EMI payments. Consistency is the key.

2. Can I switch lenders if I find a better rate after taking the loan?

Yes! You can opt for a personal loan balance transfer, which lets you move your loan to another bank with a lower rate.

3. Is it safe to take personal loans from online apps?

Stick to RBI-registered lenders only. Some shady apps may charge crazy interest rates and harass borrowers.

4. Do women really get lower interest rates?

Yep! Many banks offer 0.25% to 0.5% lower rates as a perk for women borrowers. It’s part of financial inclusion initiatives.

5. What’s better—short tenure with high EMI or long tenure with low EMI?

Short tenure means less total interest paid. But if budgeting is tight, a longer tenure with smaller EMIs might work better.

6. Can self-employed people get low-interest personal loans?

Definitely—but you’ll need strong ITRs, audited financials, and a good credit history. Some lenders even specialize in these profiles.

7. Is it cheaper to take a loan from my salary account bank?

Usually, yes. Banks love existing customers and often offer preferential rates, especially if your salary hits their account every month.

8. Can I take a personal loan to pay off a credit card?

Absolutely. In fact, it’s one of the smartest ways to escape high credit card interest. Just ensure the loan rate is lower than your card APR.

9. What’s a good interest rate for a personal loan in 2025?

Anything below 11% p.a. is solid for unsecured loans this year. Of course, your credit score, income, and loan amount play a role.

10. Does applying for too many loans hurt my chances?

Yes, it does! Each application triggers a hard inquiry, which can lower your credit score and make you look credit-hungry.

Over to You –

Before taking a personal loan make sure that your need is unavoidable and can be fulfilled by only a personal loan. Because the higher interest rates of personal loans singapore will put you under great financial pressure. Ask the following questions yourself before taking a personal loan.

  • Do I really need a loan?
  • Can I postpone my expenses?
  • Can I manage without a personal loan?
  • Is it possible to get the money from somewhere else, like friends, relatives, or a part-time job?

How to find Multibagger Stocks?

Shitanshu Kapadia
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0
How to find Multibagger Stocks?

How to Find Multibagger Stocks? Where to invest money for getting multibagger returns? These are the most frequently asked questions by stock market investors. I have received many e-mails asking for recommendations and suggestions about multi-bagger stocks. The common questions asked by the investors are –

  • Tell me the name of stock which can double my money.
  • Which stock will be next multibagger like Eicher Motors?
  • Can you recommend good stock for investing which can make me millionaire?

Well, instead of recommending a specific stock, I decided to write the post about – How to identify multi-bagger stocks?

Multibagger Stocks

Multibagger stocks are stocks that provide extraordinary returns to investors. Suppose you have purchased stock with Rs.100 and after few years you sold it for Rs.500, then it is 5-bagger stock for you.

Similarly, if you got 10 times returns on your original investment it is 10-bagger stock.

Remember, you will not get an overnight return in these types of stock. You need to wait for a few months or years to get returns.

A true multibagger stock can multiply your wealth and you can become a millionaire by investing in these types of stocks. However, it is difficult to identify such stocks. You need to do a lot of research to find such stocks. In order to help you, here is complete information about finding multi-bagger stocks.

Also Read – How to find Multibagger Stocks? – Secrets of finding Multibagger

How to Find Multibagger Stocks?

In order to find multibagger stocks logically, you need to two types of research/analysis about stock.

  1. Qualitative Analysis

Qualitative analysis is a scientific method of observation to gather non-numerical data about the stock. This includes brands, product range, management, promoter holding etc.

  1. Quantitative Analysis

Quantitative analysis is a method of getting numerical (quantity) data about the stock and doing analysis. This includes financials, cash flow, debt level etc.

multibagger stocks

Qualitative Characteristics  

First let’s try to focus on qualitative factors of the stocks.

Competitive Advantage

Competitive advantage means favorable circumstances that put business ahead of the competition. It includes products & services.  You also need to consider branding as well as a monopoly in business. This factor allows a business to perform better and get price advantage and market share over peers.

In order to find this quality, you need to ask the following questions while analyzing a stock.

Do the company offer unique products? – A company can achieve a competitive edge via unique products. You need to check if the company is offering unique products or not. A company like Reliance Jio is offering Jio Fiber at a competitive rate. This gives a durable competitive advantage of Reliance Jio.

Do the company has established a big brand or in a monopoly business?  – Another thing to check is a monopoly in business by the company. A monopoly business means higher profit margin and more returns. A company should have a preferably big brand name and high entry barrier.

Strong and Capable Management

A company should be in a safe hand. You should check for the honesty and capability of the management. Only strong management is not enough. Management should have a future goal and plan to achieve it. To find out this quality you need to ask the following question while analyzing a stock.

Do the company have a clear goal for the business in the future? – A company should be clear about goals and future business prospects. Honest management plays a crucial role here. You can get information about this by reading an annual report or going through management interviews.

In addition to the goal set by the management, you should also look that goals are realistic or not. A company should be able to demonstrate how they are going to achieve that.

You should also check if management has a proven track record and history of achieving past goals or not.

Strong Promoter Holdings

Strong promoter holding is the next important factor to check. Promoter means people that start, fund and operate a business.

A company with strong promoter holding indicates the trust of the founders in the business. A low promoter holding indicates promoter has less faith in the business and they have pulled out money from the business.

A promoter holding should be at least 50% or above. In a few cases, you may not find strong promoter holdings as holding is distributed to multiple holders including institution and public.

Quantitative Characteristics

Now let’s try to look at quantitative factors of the stocks.

The stock should be sound fundamentally. To evaluate the fundamental of stocks you need to check the quantitative characteristics of the stock. You can do that by evaluating the financial statement and quarterly results of the business.

High Earning Growth

Earning growth is the first quantitative factor to consider. A company should have high earning growth. Earning growth is the annual growth rate of earning from investment. This factor provide valuable information such as how fast a company is growing.

One of the best way to know earning growth is via EPS (Earning per Share). EPS is calculated by dividing net profit by total number of shares. This shows how much company is earning against each share. EPS of stock should be higher.

One year EPS is not enough while evaluating. You should consider past three years EPS while evaluating stock.

High Net Profit Margin

High net profit margin is another quantitative factor for consideration. A company should be performing well and should have a high net profit margin. You can calculate Net Profit Margin by dividing net profit by total sales of the company. A multibagger stock should have a higher profit margin.

You should consider the past three years’ net profit margin while evaluating a stock.

Low Debt Level

Debt is bad for any company. It can destroy a business at any time. When you are evaluating stock you should look at the stock with low or nil debt level. A debt-free company is a very good candidate for multibagger.

You can get information about the debt level from the balance sheet of the company.

Free Cash Flow

Free cash flow is the next quantitative factor to consider. Free Cash Flow is total cash left with the company after making capital expenditures such as the purchase of plant, machinery, technology, etc.

Free cash flow can be used for business expansion, new product development, debt payment or dividend distribution. You can get information about free cash flow from the financial statement of the company. You need to subtract capital expenditures from operating cash flow to get this information.

A company should be generating free cash flow year on year. This is one of the factors that helps the stock to become a multibagger.

Note – I have tried to list down characteristics that are useful for identifying multi-bagger stocks. If you find the above information useful, do share it with your friends and collogues via Facebook, Twitter or WhatsApp.

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