Bonds

Bonds

Mostly bonds are issued by government.
Infrastructure Bonds: -
Certain infrastructure financial institutes promoted by the government issue bonds at coupon rate moreover equals to bank FD rates but with the additional tax benefits u/s 80C up to certain limits. Such limits are being defined as per income tax law & reviewed every year in the budget.

Tax free Bonds: -
These are issued by companies promoted by government .The coupon rate of such bonds is equal to bank FD rates. Since these bonds are Tax free, pre tax return on such bonds is very high especially if investor is of 30% tax bracket. The pre tax returns on such instrument goes anywhere between 12.5-13%, which is much higher as compared to FD rates.

These bonds are listed and traded on exchanges (BSE&NSE), hence highly liquid and can provide fund in case of emergency. These securities are issued by government companies and are very safe. Keeping this security in DEMAT form add to its benefit. In the event of maturity & interest payment the amount directly credited to the investors account

• Mutual Funds
• Fixed Deposits
• NCD
• Bonds
• Gold Bonds