New Delhi: There are many investment options available today. But, for some time now, bonds have given very good returns in the market. Tax-free bonds have shone after the Reserve Bank of India (RBI) expected to reduce the interest rate.
Investors can invest in tax-free bonds from Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, some tax-free bonds are performing well in the stock market. The yield of these bonds is also quite attractive. Apart from this, these are secure and regular income bonds.
This bond is very good for those investors who are in higher tax slab.
You can invest in the bonds of these companies
A total of 14 infrastructure government companies in the market (such as NHAI, IRFC and Power Finance Corporation (PFC) etc.) issued tax-free bonds. These bonds are traded on major stock exchanges.
Let us tell you that these bonds were issued between 2012 and 2016. It was issued for 10 years, 15 years and 20 years. The special thing is that the interest on this bond is paid every year. Almost all of these bonds have received a rating of 'AAA'.
Why is this bond beneficial?
Tax-free bonds are a very good option for investment. Actually, there is no tax on the income earned from this. Apart from this, this bond is issued by government companies, due to which it is completely secure. This bond is a very good option for those investors who want to secure their savings and earn regular income from it.
keep these things in mind
If you are thinking of investing in interest-free bonds, then you should keep in mind the liquidity and yield to maturity (YTM) of the company. YTM means the annual return of the bond. You should invest in these bonds till maturity.
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