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Should I invest in HUDCO tax free bonds?

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

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