Debt ETFs let you invest in government bonds and money market instruments through the stock exchange. Lower risk, better liquidity than equivalent mutual funds — and no exit load.
Explore All Debt ETFs →LIQUIDBEES holds overnight government securities and accrues interest daily as fractional additional units. NAV hovers near ₹1,000. Traders park idle funds between equity trades to earn ~5-6% per annum on cash without locking money. T+1 redemption (vs T+3 for equity) makes it the most liquid fixed income product available on NSE. Zero exit load. Accepted as margin collateral by most brokers at 90% of value.
Government Securities (G-Sec) ETFs hold bonds issued by the Government of India — backed by full sovereign guarantee. Interest rate sensitive: when RBI cuts rates, bond prices rise and G-Sec ETF NAV increases (and vice versa). A 1% RBI rate cut can deliver 6-8% capital gain on a 10-year G-Sec ETF in addition to the interest income.
Edelweiss Bharat Bond ETFs (BBETF0430, BBETF0433) hold AAA-rated bonds of government PSUs maturing in the specific target year. If you hold to maturity, you get a near-certain return (yield to maturity known at purchase). Expense ratio at 0.0005% is the lowest of any ETF in India. Best for investors with known future financial needs (child education, home purchase) 5-10 years away.