There has been a rush in tax free bonds this fiscal. Bonds are being oversubscribed this year. The latest one to get oversubscribed is NHB which got oversubscribed 2.08 times in just one day!
Companies such as HUDCO, NHB, NTPC, IRFC, IIFCL, NHAI, REC, PFC and NHPC are allowed to raise tax-free bonds in 2013-14.
Who should invest?
Any one and every one. These are government companies or government backed companies and enjoy a better credit ratings.
One who is looking out for a long term steady portfolio. As these bonds are of 10, 15 and 20 year maturity bonds.
The coupon offered by these bonds range from 8.5% to 9.01% and are tax free hence these bonds have an edge against fixed deposits.
One should re-invest the interest amount from these bonds in debt mutual funds or other debt instruments like RD.
If you fall in 30% tax bracket these bonds will be most attractive to you.
Bonds which are currently open for subscription:
Bonds coming soon:
IRFC – 6th Jan 2013 (Details on IRFC tax free bonds)
Download Tax-Free Bonds Forms:
You can download the forms (here) (Don’t fill on any details asked by them simply click on submit!)
**Note – The download link is offered by an Agent and I am not compensated for the same. This is just for readers convenience.
Check out this interesting video on Tax Free Bonds by LiveMint:
Have a query or a suggestion? Comment! We will revert asap..