Bond Fund With a Difference

Investors are jittery about corporate bonds and debt mutual funds due to huge corporate defaults over the last couple of years. That’s understandable.

But what if these risks can be minimised by investing in, say, bonds issued by government companies? Banking and PSU debt funds do that to a large extent but still carry credit risk as they also invest in papers lower than AAA-rated. Some may even have exposure to equities-like risky AT1 bonds such as the ones issued by YES Bank where investors lost all their money.

However, there is one investment that can help you take exposure to a basket of AAA-rated PSUs. Bharat Bond ETF, which tracks the Nifty Bharat Bond Target Maturity Indices, is a low-cost passive debt investment,