January 25, 2012 11:37 am
Please provide the pros and cons of investing in IRFC Tax free bonds whihc are going to issued from 27th Jan 2012. I fall in 10% tax slab.
Dear Shantibhushan, Please ask yourself with which co. you are more comfortable to invest your money & then only decide to invest.
In Corporate FD offered by Mahindra Finance and DHFL, which one is the better choice?
dear naresh, it would be better to share ur portfolio before asking about any further investment.
irfc are stable bonds backed by GOI and with it being tax free returns it gives u more than 8% returns (calculation depends on ur tax slab and other savings)
these bonds will be even better if they provided cumulative options i.e. compounding your interest money rather than giving paying you annually.
People usually use up the interest that r paid or it lies in there savings deposit, so its always better to go for cumulative (if u r determined to invest ur dividends/interest money back than thats wll nd good)
also it is supposed to be listed on NSE or BSE and being gov bonds, it would have sufficient liquidity for critical times.
dats d condition now ans. depends on wat good for u.
i believe as u r already in 10% slab, it would be better to park 5%-10% annual income here wit returns and liquidity.
Dear Naresh, these bonds are better for higher tax slab persons. For your case as you are in 10.3% slab only, if you opt to invest in Eq. MFs, over the 10-15Y period, you may get far higher returns, although not gtd.
If you are already investing in PPF or PF, these bonds are not for you.
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