NYSE Arca · ETF
Invest in TAFI ETF from India
Indian and foreign residents can buy Alliance Bernstein - AB Tax-Aware Short Duration Municipal ETF (TAFI) units directly through Paasa.
By Paasa · Updated
TAFI at a glance
- Price
- $24.91-$0.03 (0.12%)
- Expense ratio
- 0.27%
- Day range
- $24.89 – $24.95
- Assets
- $1.5B
- Domicile
- the US
- Holdings
- 689
- Launched
- 2022
- Dividends
- Distributing
- 1 month
- +0.97%
- 6 months
- -0.88%
- YTD
- -1.46%
- 1 year
- -1.31%
- 5 years
- —
Price change, excluding dividends.
Top 10 holdings
- 1ALLIANCEBERNSTEIN GOVT STIF SSC FUND 64BA AGIS 5873.7%
- 2ALABAMA ST TOLL ROAD BRIDGE ATRTRN 10/32 FIXED 51.7%
- 3PENNSYLVANIA ST ECON DEV FING PASMED 05/53 ADJUSTABLE VAR1.4%
- 4ARIZONA ST HLTH FACS AUTH AZSMED 01/46 ADJUSTABLE VAR1.2%
- 5QUINCY MA QUI 08/27 FIXED 51.0%
- 6NEW YORK NY NYC 02/32 FIXED 50.9%
- 7TENDER OPTION BOND TRUST RECEI TENGEN 07/30 ADJUSTABLE VAR0.9%
- 8BLACK BELT ENERGY GAS DIST AL BBEUTL 12/31 FLOATING VAR0.8%
- 9CUMBERLAND CNTY NC INDL FACS CUMPOL 12/27 ADJUSTABLE VAR0.8%
- 10CALIFORNIA ST PUBLIC WKS BRD L CASFAC 09/32 FIXED 50.8%
TAFI holds 689 securities in total. These 10 are 13.3% of the fund.
Where the money is invested
Sectors
- Municipal90.4%
- Government1.7%
- Securitized1.2%
- Corporate0.2%
Countries
- United States92.7%
- Other4.4%
- Puerto Rico2.2%
- Guam0.7%
How to invest in TAFI from India
Step 1
Open your Paasa account
KYC takes a few minutes: PAN, Aadhaar and address proof. Your brokerage account is opened in your own name with Interactive Brokers.
Step 2
Add funds from your Indian bank account
Remit up to $250,000 a year under the RBI's Liberalised Remittance Scheme. Your bank converts the rupees to US dollars at its rate on the day you remit.
Step 3
Search TAFI and buy
Find the fund by its ticker, TAFI, on NYSE Arca, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in TAFI from India
What TAFI holds
This actively managed exchange-traded fund invests primarily in shorter-duration municipal bonds. It utilizes a flexible approach with the goal of preserving capital while aiming for a reasonable level of income, optimized for after-tax returns.
Hold a dollar asset
TAFI is priced in US dollars, so a weaker rupee adds to what it's worth in rupees. The rupee depreciated over 85% against the dollar between 2010 and 2025.
Buy a fraction of a unit
Buy by amount, not by unit, and get the matching fraction of one TAFI unit. There is no minimum trade size.
Paasa handles the paperwork
Investing abroad brings paperwork with it: remittance filings, capital gains reporting, foreign asset disclosure. Paasa prepares all of it for you. Your India-ready tax reports arrive at year end, ready to file.
Planning to hold more than $60,000 in US ETFs? Here's what US estate tax means for you.
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family.
A UCITS ETF tracking a similar market sits outside US estate tax.
Frequently asked questions
Can I buy TAFI from India?
Yes. Indian residents can buy Alliance Bernstein - AB Tax-Aware Short Duration Municipal ETF (TAFI) through Paasa. It is listed on NYSE Arca and trades in US dollars. Your money leaves India under the RBI's Liberalised Remittance Scheme, and the units are held in your own name at Interactive Brokers.
What does TAFI invest in?
Alliance Bernstein - AB Tax-Aware Short Duration Municipal ETF holds 689 securities. Its largest holdings are ALLIANCEBERNSTEIN GOVT STIF SSC FUND 64BA AGIS 587 (3.7%), ALABAMA ST TOLL ROAD BRIDGE ATRTRN 10/32 FIXED 5 (1.7%) and PENNSYLVANIA ST ECON DEV FING PASMED 05/53 ADJUSTABLE VAR (1.4%). Municipal is its largest sector at 90.4%. It is a distributing fund domiciled in the US.
What is the expense ratio of TAFI?
Alliance Bernstein - AB Tax-Aware Short Duration Municipal ETF has an expense ratio of 0.27% a year, taken from the fund's assets rather than billed to you. The fund manages about $1.5B.
How are TAFI dividends taxed in India?
Alliance Bernstein - AB Tax-Aware Short Duration Municipal ETF is a distributing fund. It pays the dividends from its holdings out to you in cash. Dividends are taxed at your slab rate in India. Paasa's dividend report lists the gross dividend and any tax withheld for each payment.
What tax do I pay in India when I sell TAFI?
The US does not levy capital gains tax on shares for Indian residents. Gains are taxable in India. Debt-oriented funds can be taxed differently from equity funds, so confirm your rate before selling. The gain is worked out in rupees at the USD/INR rate on the day you bought and the day you sold, so the currency move is part of the gain. Paasa's capital-gains statement gives you the figures for your return.
Can I buy a fraction of one TAFI unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $24.91, and there is no minimum trade size.
What happens to my TAFI units if I pass away?
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family. A UCITS ETF tracking a similar market sits outside US estate tax. Paasa's US estate tax calculator shows the exposure for a given portfolio value.