Bonds, Fixed Deposit

Tax Free Bonds This product provides a good avenue for long term investment, especially for those interested in regular incomes. Like debentures, Bonds also form the part of Debt as an asset class, and both are quite similar in many ways. It is a fixed return investment with low/moderate risk involved. The fact that the bonds are generally issued by government backed entities helps in reducing the risk of default which in turn adds to the credit rating of the bonds.

With the dearth of options in this domain, these bonds have been many an investor’s favorite. It is more suitable and beneficial for high net-worth individuals and corporates looking for long term allocation. Further, it is more lucrative for those who fall in the highest income-tax bracket.

Following are some of the features of a Tax Free Bond :

• Interest received on these bonds are fully exempt from income-tax.
• Pre-tax yield on such Bonds are higher than normal Bank FD.
• It is listed on the stock Exchanges. Hence provides liquidity to the investors.
• Bonds are generally issued by government backed companies.
• Tenure of between 10 years and 15 years.
• Transacted in Dematerialised mode also.

We also facilitate investments in various Bonds offered by the Reserve Bank of India (RBI) and also in Fixed Deposits brought out by various private as well as public sector companies for those investors who prefer to have a fixed return on their investments.