Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Monday 25 February 2013

Tax-free Bonds are good before interest Rate Falls

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

With more cuts in policy rates this year, future bonds will offer lower returns. Lock your money now, says

 

 

HUDCO and IRFC have extended their ongoing public issues of tax free bonds, even as RBI slashed key policy rates last week.


Clearly, the institutions are trying to cash in on the consensus that interest rates are likely to fall soon and investors better lock in investments at the rates available in the market.


Some banks have already reduced their lending rates, underscoring the possibility of a lower interest rate regime in the coming months.


Interest rates are expected to move down from here. Current yields offered by the ongoing tax free bonds are attractive and it makes sense to invest now. Many experts believe it is not wise to wait for better rates.


RBI is likely to reduce the benchmark interest rates by 50 to 75 basis points in the current calendar year. That means the forthcoming tax free bonds are likely to offer lower rates. In fact, the interest rates payable on the 10- and 15-year "AAA" rated tax-free bonds have come down from 7.72% and 7.88% (REC Tax-Free Bonds) to 7.68% and 7.84%(ongoing IRFC Tax Free Bonds) in the last two months. If the borrowing numbers mentioned in the budget remain in line with market expectations and inflation remains within the comfort zone of RBI, we may see further rate cuts.

Tax-Free Bonds

Before putting in money in the current crop of tax-free bonds, it pays to know the investment options in this space.


HUDCO has a credit rating of "AA+" and offers tax-free interest of 7.84% and 8.01% for 10 and 15 years, respectively, to retail individual investors.


IRFC has a credit rating of "AAA" and offers tax-free interest of 7.68% and 7.84% for 10 and 15 years, respectively, for retail individual investors, who can invest up to . 10 lakh in these bonds. If you want to invest more than . 10 lakh in one name, you get 50 bps lower interest rates.


HUDCO and IRFC bonds are closing on February 7 and February 8, respectively. If you compare these two options with the recent private placement of "AAA" rated 10-year NHB bonds, which offered 6.85% tax free, they appear to be far more attractive.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts