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.
18 November 2014, Tuesday
Generally, the more risk involved with an investment, the higher will be the potential return. As a result, the more risk you are willing to take, the more potential your savings have to grow over a long period. Before choosing an investment, you must make sure that you understand the investment, ...
18 November 2014, Tuesday
Inflation One of the steadiest risks involved in your investments is inflation. Inflation is the increase in the cost of living or decrease in the value of money, expressed as a percentage increase over last year's prices. Inflation is a simple concept that punishes the people who ignore it. Even...
17 November 2014, Monday
In recent years, governments worldwide have instituted laws that directly or indirectly require companies to decrease vulnerability to identity theft. In many cases, their initial rollouts have focused on the public sector but the prevalence of digital certificates and greater market awareness of ...
18 July 2012, Wednesday
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 Administrator (TP...
14 March 2014, Friday
As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an Equity Linked Savings Schemes. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in peri...
07 January 2014, Tuesday
One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger y...