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List of Best Bond ETFs in India (2026)

Bond ETFs are gaining traction in India, offering investors diversified exposure to government and corporate bonds. With the Indian bond market reaching ₹60 lakh cr in 2025, these funds provide an alternative to equities, typically offering stability and lower risk. This article will delve into the features, benefits, and potential risks of Bond ETFs, helping investors understand their role in a balanced portfolio.

Top Bond ETFs in 2026

Bond ETF Stock Screener

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NameStocks (7)↓↓Sub-SectorSub-Sector↓↓Market CapMarket Cap↓↓Close PriceClose Price↓↓PE RatioPE Ratio↓↓1D Return1D Return↓↓1M Return1M Return↓↓6M Return6M Return↓↓1Y Return1Y Return↓↓PB RatioPB Ratio↓↓Return on EquityReturn on Equity↓↓ROCEROCE↓↓Dividend YieldDiv Yield↓↓Debt to EquityDebt to Equity↓↓Volatility vs NiftyVolatility vs Nifty↓
1.BHARAT Bond ETF-April 2030-GrowthEBBETF0430DebtDebt8,445.288,445.281,562.781,562.78--0.110.11-0.14-0.142.042.047.407.40------0.000.00--0.110.11
2.Bharat Bond ETF - April 2023EBBETF0423DebtDebt8,369.708,369.701,230.391,230.39--0.000.00--3.293.294.784.78------0.000.00--0.000.00
3.BHARAT Bond ETF-April 2032BBETF0432DebtDebt8,313.218,313.211,311.721,311.72---0.09-0.09-0.28-0.281.561.566.916.91----------0.160.16
4.BHARAT Bond ETF - April 2033EBBETF0433EquityEquity3,518.963,518.961,271.831,271.83---0.03-0.03-0.06-0.061.561.566.526.52----------0.110.11
5.Axis Nifty AAA Bond Plus SDL Apr 2026 50:50 ETFAXISBPSETFEquityEquity370.70370.7013.1513.15--0.000.000.310.312.412.416.826.82----------0.210.21
6.Bharat Bond ETF - April 2025EBBETF0425DebtDebt0.000.001,290.831,290.83--0.000.00--3.853.857.577.57----------0.000.00
7.BHARAT Bond ETF-April 2031-GrowthEBBETF0431DebtDebt--1,396.531,396.53--0.040.040.120.121.801.807.057.05----------0.180.18
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Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Bond ETFs in India

BHARAT Bond ETF-April 2030-Growth

BHARAT Bond ETF-April 2030-Growth is a government-backed debt ETF investing in AAA-rated public sector bonds maturing in April 2030. It tracks an index of central public sector undertaking bonds with a defined maturity profile.

Bharat Bond ETF - April 2023

Bharat Bond ETF - April 2023 invested in AAA-rated bonds from public sector companies with maturity aligned to April 2023. This ETF has likely matured and is no longer actively traded.

BHARAT Bond ETF-April 2032

Bond ETF-April 2032 holds AAA-rated debt securities from central public sector undertakings maturing around April 2032. It offers exposure to high-quality government-backed corporate bonds with longer-term maturity.

Nippon IN ETF Nifty 8-13 yr G-Sec Long Term Gilt

Nippon IN ETF Nifty 8-13 yr G-Sec Long Term Gilt tracks government securities with remaining maturity between 8-13 years. It provides exposure to sovereign debt instruments issued by the Government of India.

Nippon India ETF Nifty 1D Rate Liquid BeES

Nippon India ETF Nifty 1D Rate Liquid BeES is an overnight debt ETF investing in securities with one-day maturity. It tracks overnight lending rates, offering liquidity similar to overnight investment instruments.

What are Bond ETFs?

Bond ETFs (Exchange-Traded Funds) are investment funds that pool together a diversified portfolio of bonds and are traded on stock exchanges, much like individual stocks. These ETFs typically invest in government, municipal, or corporate bonds, offering investors a way to gain exposure to the fixed-income market without purchasing individual bonds. Bond ETFs are designed to track the performance of a specific bond index, such as the Nifty Bond Index or a government bond index.

How to Invest in Bond ETFs?

Here's how you can invest in Bond ETFs using Tickertape -

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter Bond ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
  4. Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Features of Bond ETFs in India

Exchange Trading

You can buy and sell Bond ETFs on stock exchanges just like regular stocks. Trading happens during market hours at live prices through your demat and trading accounts.

Diversified Bond Portfolio

These funds pack multiple bonds together. You get exposure to various debt securities in one go instead of buying individual bonds separately.

Lower Minimum Investment

Bond ETFs let you enter the debt market with less money than what direct bond investments need. Individual bonds usually ask for higher minimum amounts.

Transparency

Fund houses regularly share what bonds they're holding. You can check the underlying bonds and their details whenever you want.

Defined Maturity Options

Some bond ETFs, like Bharat Bond ETFs, come with a target maturity date. The portfolio matures on that specific date, working similar to holding bonds till maturity.

Advantages of Investing in Bond ETFs in India

Liquidity

Since these trade on exchanges, you can buy or sell during market hours. Direct bond investments don't offer this flexibility because their secondary market often has limited liquidity.

Cost Efficiency

Bond ETFs charge lower expense ratios than actively managed debt mutual funds, meaning fees eat less into returns over time.

Professional Management

Fund managers select, build, and rebalance the ETF portfolio, removing the need to research individual bonds yourself.

Diversification Across Issuers

One ETF provides exposure to multiple issuers, reducing concentration risk compared to individual bonds.

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Risks of Investing in Bond ETFs in India

No Default Risk on Government Securities

G-Sec-focused ETFs carry sovereign backing, eliminating issuer default risk.

Interest Rate Risk

Bond prices fall when interest rates rise, causing NAV declines and potential capital losses.

Credit Risk

Corporate or PSU bond ETFs face risks from issuer defaults or rating downgrades, which reduce fund value.

Liquidity Risk

Low trading volumes in some bond ETFs can lead to wider bid-ask spreads and execution challenges.

Tracking Error

Performance may diverge from the benchmark index due to costs, expenses, or partial replication.

Market Price vs NAV Deviation

ETF market prices can trade at a premium or discount to NAV, affecting buy/sell outcomes.

Factors to Consider Before Investing in Bond ETFs

Duration and Maturity Profile

Longer-duration ETFs react more sharply to interest rate changes than shorter-duration ones.

Credit Quality of Holdings

Credit ratings determine default risk. Government, AAA, and lower-rated bonds carry different risk-return profiles.

Expense Ratio

Annual charges reduce returns and accumulate over long holding periods.

Trading Volume and Liquidity

Higher volumes support tighter spreads and smoother execution.

Underlying Index Methodology

Index construction, bond selection, and rebalancing rules influence ETF performance.

Yield to Maturity

YTM indicates potential returns if bonds are held to maturity, excluding price changes or defaults.

Taxation on Bond ETFs

The taxation of Bond ETFs is linked to how long the units are held. The applicable tax differs for short-term and long-term capital gains, as explained below.

Holding Period Tax Treatment Rate
All Holding Periods For investments made after April 1, 2023, all gains are treated as Short-Term Capital Gains (STCG) regardless of the holding period. All gains are added to your income and taxed according to your income tax slab.

Conclusion

Bond ETFs provide a practical way for investors to gain exposure to the fixed-income market with the added benefits of liquidity, diversification, and lower fees compared to traditional bond investments. While they offer relatively stable returns, it’s essential to assess risks like interest rate changes and credit risks before investing. As Bond ETFs become more popular in India, they present a viable option for investors looking to balance their portfolios with fixed-income exposure.



For detailed analysis and comparison of Bond ETFs, investors can use the Tickertape Stock Screener. With over 200 filters, you can evaluate different bond ETFs to find those that align with your investment preferences.

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Frequently Asked Questions on Bond ETFs

  1. What is a bond ETF?

    A Bond ETF (Exchange Traded Fund) is a pooled investment fund that holds a portfolio of bonds and trades on stock exchanges like equity shares. It provides investors with exposure to a diversified basket of debt securities through a single tradable unit.

  2. Which bond ETF is the best?

    As of 2nd January 2026, some of the best bond ETFs in India according to market cap include:
    1. BHARAT Bond ETF-April 2030-Growth
    2. Bharat Bond ETF - April 2023
    3. BHARAT Bond ETF-April 2032
    4. Nippon IN ETF Nifty 8-13 yr G-Sec Long Term Gilt
    5. Nippon India ETF Nifty 1D Rate Liquid BeES

    Disclaimer: The above bond ETF list in India is for educational purposes only and should not be considered investment advice.

  3. How do Bond ETFs work in India?

    Bond ETF India track a specific bond index by holding the underlying bonds in similar proportions. Investors can buy and sell units on stock exchanges during trading hours through their demat accounts, with prices fluctuating based on market demand and the value of underlying bonds.

  4. What is the difference between Bond ETFs and Bond Mutual Funds?

    Bond ETFs trade on exchanges at market prices throughout the day, while bond mutual funds are bought or sold at end-of-day NAV. ETFs typically have lower expense ratios and require a demat account, whereas mutual funds can be purchased directly without one.

  5. Are Bond ETFs safe investments?

    Bond ETFs carry varying levels of safety depending on underlying holdings. Government bond ETFs have sovereign backing with minimal default risk, while corporate bond ETFs carry credit risk. All bond investments face interest rate risk, affecting prices. Disclaimer: This response is informational and not recommendatory. Please consult a SEBI-registered advisor or conduct independent research before making any decisions.

  6. Do Bond ETFs pay dividends or interest?

    Bond ETFs receive interest income from underlying bonds, which may be distributed to unitholders as dividends or reinvested based on the fund's structure. Growth option ETFs reinvest income, while dividend options distribute it periodically. Disclaimer: This response is informational and not recommendatory. Please consult a SEBI-registered advisor or conduct independent research before making any decisions.

  7. What is the lock-in period for Bond ETFs?

    Bond ETFs have no lock-in period. Investors can buy or sell units on the stock exchange during market hours at any time, providing liquidity similar to equity investments. Disclaimer: This response is informational and not recommendatory. Please consult a SEBI-registered advisor or conduct independent research before making any decisions.

  8. What is NAV in Bond ETFs?

    NAV (Net Asset Value) represents the per-unit value of the ETF's underlying bond portfolio calculated daily. While the market trading price may differ slightly, NAV indicates the actual value of bonds held by the fund. Disclaimer: This response is informational and not recommendatory. Please consult a SEBI-registered advisor or conduct independent research before making any decisions.

  9. How to sell bond ETFs?

    Bond ETFs can be sold by placing a sell order through your demat account on the stock exchange during trading hours. The order is executed at the prevailing market price, and the sale proceeds are credited after standard exchange settlement.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.