Should I invest in HUDCO tax free bonds?

POSTED BY atanu ON December 15, 2013 7:36 pm COMMENTS (8)

Hi,

I am not currently under any tax slab.And my job is unstable.My age is 39.

Hudco  tax free bonds gives 9.01% interest in 20 years term. And this mean no tax on interest( whatever interest I’ll may earn).(at present and in future).

I have two mutual funds(monthly SIP 1500(1000+500)).

I want monthly income properly. Because I don’t want to stop SIP . Also may be this Hudco  tax free bond\’s  interest can  give me a security.

If I invest 100000(1 lakh) in Hudco  tax free bonds for 20 years term, I\’ll get 9.1%(may be half of my total SIP invest (yearly))  and interest will not change. I want security on this investment for 20 year.

Please give me an advise, that whether I’ll invest 1lakh in  Hudco tax free bonds or invest in Mutual fund as monthly Sip (using this  1lakh. i.e. 2500/month)

Also please inform, whether Hudco tax free bonds will right choice for Non Tax Payer or not.

Many thanks and regards.
Atanu

8 replies on this article “Should I invest in HUDCO tax free bonds?”

  1. ashalanshu says:

    Dear Atanu, Yes, you are understanding it correctly.

    Thanks

    Ashal

  2. ashalanshu says:

    Dear Atanu, what you ‘ll get from this? I mean continuing the SIP for next 20 Years? If Idea is to invest the current lump sum amount for long term goal, I w’d ask you to put the money in single shot in the same Eq. MFs where you intend to invest through SIP.

    Thanks

    Ashal

    1. atanu says:

      you mean, I should invest this current lump sum amount to MFs where I intend to invest through SIP?
      Thanks
      Atanu

  3. ashalanshu says:

    Dear Atanu, you mean to say, you ‘ll continue your SIP for next 20Y from tjhe interest amount?

    thanks

    Ashal

    1. atanu says:

      Thanks for reply.
      Due to my unstable job, I’ll continue my SIP for next 20Y from the interest amount of hudco-tax-free-bond.
      Actually I am interested only on SIP. So I do not want to stop SIP in this duration. If there any way(I am not strict on Hudco’s interest) to get tax free interest on yearly, please inform.
      My point is to continue my SIP without headache.
      Thanks.
      Atanu

    2. atanu says:

      Yes “I‘ll continue my SIP for next 20Y from the INTEREST AMOUNT”. Thanks, you catch my point. Please give way.
      Thank you
      Atanu

  4. atanu says:

    Thanks for reply.
    Hudco return(interest)/year upto 20 year goes to-> mutual fund SIP.
    Because of unstable job and intention is to not stop SIP long time, if I plan like this, is it wrong? Or please give better idea.
    Thanks

  5. ashalanshu says:

    Dear Atanu, do you need mly income from such tax free bonds for consumption or for investment in Eq. MFs? I’m unable to understand from your query, hence asking.

    Thanks

    Ashal

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