The government is expected to launch India’s first fixed income Exchange Traded Fund (ETF) in December, reports The Indian Express. The ETF is expected to be sized around Rs 15,000-20,000 crore and will contain debt securities of a dozen state-run companies.
The fund will include only AAA-rated papers of the public sector units (PSUs). It could offer a return of over seven percent for investors, higher than the 5.5 percent post-tax return offered by most fixed bank deposits.