Infrastructure bonds are usually issued by the Government and infrastructure financing Companies, to raise funds for infrastructure projects. Whenever the Government is short of funds, it issues infrastructure bonds to finance these projects.
You can apply online to invest in an infrastructure bond, if you have a demat account. You have to fill up the online application form.
You require a demat account and a PAN to trade in infrastructure bonds.
You can apply for these bonds in the physical form. You require a self attested PAN card. You need to have identity and address proof as part of the KYC (Know Your Customer), procedure.
These bonds have a maturity period of 10 years and a lock in period of 5 years.
These bonds can be traded on stock exchanges just like stocks, after the expiry of the lock in period.
The interest earned on an infrastructure bond is taxable.
You get a decent rate of interest. This is because infra bonds invest in infrastructure, which is a rapidly growing sector in our country.
The Government is funding the growth of 100 smart cities in the country. Infrastructure bonds have an exposure to smart cities.
The Government has launched ambitious projects, such as affordable housing for all by 2020. Infra bonds help this cause.
If you purchase infra bonds from certain firms, you get free insurance. This is an added benefit along with the interest you get.
If you are an Indian resident or a HUF, you can invest in the infrastructure bond. NRI's cannot invest in infrastructure bonds. These bonds have a minimum investment amount of INR 5000 and thereafter in multiples of INR 5000.
16 January 2010, Thursday
Who will Issue Infrastructure Bonds? The bonds will be issued by; Life Insurance Corporation of India Industrial Finance Corporation of India Infrastructure Development Finance Company Non-banking finance companies classified as infrastructure finance companies by the RBI. Features o...
17 January 2010, Thursday
You might have thought many times that what does these big economists do and how does their decisions affect us…..? So this time we are trying to take you through some of the main concepts of economic policies and the affects of those on each of us the so called “Aam Aadmi”. So ...
21 January 2009, Thursday
Bonds always carry the risk that the principal amount might not be paid back. Companies with higher credit worthiness are more likely to be safe investments although their coupon rate will be lower than companies with lower credit ratings. Credit ratings are also offered by firms such as Standard ...
20 January 2008, Thursday
The BSE Sensex or Bombay Stock Exchange Sensitive Index is a value-weighted index composed of 30 stocks with the base value of 100 started on April 1979. It consists of the 30 largest and most actively traded stocks, representative of various sectors, on the Bombay Stock Exchange. These companies ...
07 January 2014, Thursday
There is a famous saying “Better be safe than sorry”. One cannot make too many mistakes and live to tell the tale when he is investing in the stock market. Building a safety net under one’s portfolio is very essential and its true value is realized only in a recession. Fortunately...
18 January 2012, Thursday
Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways : On a Cashless basis and A Reimbursement Claim On a Cashless basis : For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party Admini...