Inflation indexed bonds

POSTED BY Rekha ON August 23, 2013 11:13 am COMMENTS (6)

Can someone give feedback about investing in Inflation indexed bonds.What should be the expected coupon rate and its liquidity options that makes it a better investment option for individual investors?

What is the ideal % of such bonds in anyone’s portfolio?

6 replies on this article “Inflation indexed bonds”

  1. ashalanshu says:

    Dear Astrosunil, the income from tax free bonds is tax free. So yes these bonds are E-E-E status. As there is no compounding and at maturity you ‘ll get only your basic principal, hence question of tax on your basic capital does not arise.

    Thanks

    Ashal

  2. astrosunil says:

    Hello Ashal, can you pls explain more on these tax free bonds ? Are the EEE ? i.e exempted income tax for running & maturity time as well ?

  3. Rekha says:

    Thanks Ashal. Is there any rating available to be checked before investing in the PSU bonds?
    I’m under the impression that all PSU bonds are relatively safer.. Please correct me if I’m wrong.

  4. Dear Rekha, the bonds are debt asset class product. Hence one should look upon one’s own asset allocation & within debt, check PF, PPF, RDs, FDs, debt MFs & bonds & accordingly invest. I can not put any random figure blindly with out knowing your portfolio details. it’s in your own interest that you think seriously for your over all portfolio.

    Thanks

    Ashal

  5. Rekha says:

    Thank you Ashal.
    Could you also tell me what should be the ideal % allocation of bonds in an individual’s portfolio.
    Do you have any preferred/top rated PSU bonds?

  6. Dear Rekha, inflation indexed bonds are yet to be launched for retail public. Instead of that, you may invest in tax free bonds soon to be released by various PSUs.

    thanks

    Ashal

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