Infrastructure bonds

POSTED BY Prashant ON September 25, 2010 8:11 am COMMENTS (4)

From this budget,we can invest  an additional 20k in infrastructure bonds.Had a couple of question on this .

What are infrastructure bonds.?
Is it a good option if we have already invested 1 lac in PPF+Term insurance+MF.?
Let me know which infrastructure bond to invest in?
How can i buy them.?
Are there any risk in that.?

4 replies on this article “Infrastructure bonds”

  1. I agree with Gaurav

    Infra bonds is not for people who can take moderate risk and invest in equity oriented schemes , Look more for infrastructure bonds at : https://www.jagoinvestor.com/2010/08/tax-deductions-from-instrastructure-bonds-under-80c.html

  2. Gaurav Malik says:

    I would not look at an INFRA Bond even though it saves an additional 20K on tax but investors should also know that money is locked in for 10 years. Would I want to lock in my money for tax benefits for 10 years when I know same amount invested in MF/stocks would give me higher returns.

  3. rakesh says:

    Infrastructure bonds are issued basically by the Government for the infrasturcture/devlopment of country.
    Yes its a good option, we can save additional tax.
    You can invest in any of the companies – IDFC, IFCI have already started, LIC will follow soon.
    You need to have a Demat account to buy them.
    There are no risks involved but the returns would be around 7-8% which will just manage to beat inflation.
    I am going to invest in these bonds.

    Rakesh

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