| Author | Message | ||
     Netsaint Side Hero Username: Netsaint Post Number: 7108 Registered: 05-2008 Posted From: 49.204.177.65 Rating: N/A |
There will be a lot of these bonds issued between January and March of every year like REC,NHAI,Other power projects etc My Telugu Bhakthi Blog :http://gurugeetha.blogspot.com/ | ||
| Filmbuff Comedian Username: Filmbuff Post Number: 1139 Registered: 11-2011 Posted From: 82.145.208.215 Rating: N/A |
Redbull - they pay out the 7.72% every year and return the principal after ten years. The interest is no taxed in your hands. The tax free bonds that were issued early this year - PFC, NHAI etc are very actively traded on NSE and have given returns of 8-9% on the issue price just on the capital appreciation (from 1000 to around 1080). If you add in the coupon the total returns have been in the range of 20%. They too have some lesser interest for secondary buyers, not exactly sure of the quantum. That does reduce liquidity but there is bound to strong demand for these issues which will sustain the aftermarket. | ||
| Mrhyderabad Side Hero Username: Mrhyderabad Post Number: 9669 Registered: 01-2008 Posted From: 98.221.83.18 Rating: N/A |
No. indirectly u r getting 11% return ani OP bhaavam Don't say you don't have enough time. You have exactly the same number of hours per day that were given to Helen Keller, Pasteur, Michaelangelo, Mother Teresea, Leonardo da Vinci, Thomas Jefferson, and Albert Einstein | ||
| Redbull Comedian Username: Redbull Post Number: 1488 Registered: 03-2009 Posted From: 195.43.48.145 Rating: N/A |
what does this mean..suppose if i invest 1 lakh INR. every year they pay out 7.72% interest and they return our 1 lakh after 10 years? or do they pay 11% interest every year? or is our interest reinvested into principle I agree there is no lock in.suppose if i want to exit after 2 years..will there be buyers where in interst is less by 50 basis points thanks in advance | ||
| Filmbuff Comedian Username: Filmbuff Post Number: 1130 Registered: 11-2011 Posted From: 117.195.214.42 Rating: N/A |
Easiest way to invest is to transfer money to parents, if they have a demat account in India. They can complete the application form and give in any of the accredited bank branches. If they do not have a demat account, it will be tough. There might some guidelines for NRI investment in the prospectus, but i am not too aware of that. | ||
| Amigo Comedian Username: Amigo Post Number: 1351 Registered: 05-2011 Posted From: 24.228.177.250 Rating: N/A |
Oh did you mean the there is no tax on the interest? Can US citizens buy those? If yes, don't they have to pay interest to US govt for 7.72 % interesy? | ||
| Gotcha Side Hero Username: Gotcha Post Number: 9694 Registered: 02-2008 Posted From: 99.33.1.240 Rating: N/A |
How to buy these? Need a primer never bought any if these and i remember used to dabble in these kind but not sure This real estate is for sale. | ||
| Conquas Side Hero Username: Conquas Post Number: 5910 Registered: 11-2011 Posted From: 99.82.251.78 Rating: N/A |
thanks ton bro... ippude chadiva aa economicstimes link.... idhi 30% tax bracket vallaki good antunnadu.... all opinions expressed here are mine.. | ||
| Filmbuff Comedian Username: Filmbuff Post Number: 1129 Registered: 11-2011 Posted From: 117.195.214.42 Rating: N/A |
Prospectus is here - http://www.sbicaps.com/Main/News.aspx Other details - http://economictimes.indiatimes.com/personal-finance/savings -centre/savings-news/new-product-launch-rec-tax-free-bonds/a rticleshow/17464892.cms Amigo - basic ga entante, if you take a 10 year bond, you will get 7.72% interest every year. This will be tax free in the hands of the investor. They don't have a lock-in. You will get your principal back after 10 years (or 15 years, whichever you chose that is). The only tricky part in the REC bond is that if you sell the bonds in the secondary market, the subsequent investors (who you sold your bonds to) will get 50 basis points less interest. That's it in a nutshell | ||
| Amigo Comedian Username: Amigo Post Number: 1347 Registered: 05-2011 Posted From: 24.228.177.250 Rating: N/A |
Deeni medha konchem explanation add cheyyi bro....did not get the full picture... | ||
| Conquas Side Hero Username: Conquas Post Number: 5909 Registered: 11-2011 Posted From: 99.82.251.78 Rating: N/A |
koncham details vunna link isthara? all opinions expressed here are mine.. | ||
| Filmbuff Comedian Username: Filmbuff Post Number: 1128 Registered: 11-2011 Posted From: 117.195.214.42 Rating: |
In the past, i had mentioned about tax free bonds in India and some of you evinced interest. REC (Rural Electrification Corp), a govt company, is coming with a fresh issue. 7.72% coupon for 10 year bonds and 7.88% for 15 year bonds. On a pretax basis, this would translate to over 11% return. 11% is a good return for a sovereign guaranteed bond. Some of you can consider investing, considering that a rate cut is bound to happen sooner rather than later. Subbarao has been holding out for long, justifiably. But it might happen in first half of 2013. Issue closes on Dec. 10th. |
