Skip to main content

PFC Bond Listing

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

 

THE premium listing that the National Highway Authority of India (NHAI) bonds got in the markets last week has stepped up the expectations and set the benchmark for the bonds of Power Finance Corporation (PFC) that will list in a day or two. Like the NHAI bond, which listed at a 3 per cent premium on its debut last Wednesday, expectations are riding high for the other tax-free bonds that raised funds recently, including PFC, IRFC (Indian Railway Finance Corporation) and Hudco (Housing and Urban Development Corporation) to have a premium listing.

We expect most of the recent bond issues to list at a premium, since the pricing at the time of issue was also at a similar level. There may be a 5-7 basis point high or low, that too based on the frequency of these companies coming to the market. For instance, NHAI has not been coming to the market quite often, whereas, PFC has been around more frequently to raise funds.

NHAI raised Rs 10,000 crore through a tax-free bond issue, while PFC raised over Rs 4,000 crore.


Both issues promised annual tax-free returns of 8.2 per cent for the ten-year bonds and 8.3 per cent for the 15-year bonds. The 10 year bond of NHAI, the N1 series, closed at Rs 1,032 in the NSE on Monday, while 15-year bond, the N2 series, closed at Rs 1,038.

Bonds of IRFC, Hudco will take some more time to list, and the premium will depend on the interest rate scenario then, Manglunia says.

However, Rural Electrification Corporation (REC), whose Rs 4,000 crore tax-free bond issue is expected to open next month, may not meet with a fervent response.

REC's issue will come at a time when there would be expectations of another CRR (cash reserve ratio) cut and interest rates will be expected to soften. We

expect the REC issue to have a reduced coupon rate and also may not get this kind of a listing.

Bond markets perform conversely to the interest rate movement. Since the interest rates peaked in the recent times, the bond issues also received excellent response from the corporate investors and high-networth individuals (HNI).


Also, we do not get to see such tax-free bonds by public-sector companies every year, which make them much more attractive, experts say.

In most of the issues, the institutional investment and the HNI portion were  oversubscribed, while the retail portion was barely subscribed. For instance, NHAI's bond issue was a Rs 10,000 crore issue, but the retail portion of the bond was only Rs 600-700 crore, and even that was not adequately subscribed despite a good overall subscription because of lack of awareness among the public, experts point out.

Unlike equity markets, prices in the bond markets are more or less stable. It changes with a change in the interest rates or credit quality. The prices are stable and investors are comfortable holding on to their investments.

 
 

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

 

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

 

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

 

These Application Forms can be used for buying regular mutual funds also

 

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. HDFC TaxSaver
  2. ICICI Prudential Tax Plan
  3. DSP BlackRock Tax Saver Fund
  4. Birla Sun Life Tax Relief '96
  5. Reliance Tax Saver (ELSS) Fund
  6. IDFC Tax Advantage (ELSS) Fund
  7. SBI Magnum Tax Gain Scheme 1993
  8. Sundaram Tax Saver

---------------------------------------------

Application form for Tax Saving Infrastructure Bond and more information

Current open Infra Bond Application form

 

Submit filled up application    Collection canter near you

  

------------------------------------------------
How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Download REC Tax Free Bond Application Forms

Submit the filled up form to Collection canter near you

Popular posts from this blog

Guide to pension plans in the form of Insurance

  Pension plans ensure that you are financially secure during your golden years. Take a look at the important aspects that you must keep in mind while opting for one...      Gone are the days when a leading criterion for choosing an employer was the type of pension plan that came with your salary package. Today, more important issues like matching of skill sets to job requirements, scope for personal and financial growth, etc. have come to the forefront. However, this has left individuals with the responsibility of financially planning for their golden years. And it's all for the best as there are a variety of pension plans available in the market to suit different individuals and their specific needs. WHAT ARE PENSION PLANS?     In a pension plan, you are required to pay premiums for a certain number of years and once you reach the retirement age, the insurer returns a lump sum amount that can be then used to purchase an annuity or stream of income for the rest of your life....
Read more

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Time to go for value picks

Though the stock market is on a slide, disciplined investors need not worry if they go for value picks The US bailout package was expected to cheer the market. Many investors were hoping that it may give a fillip to the market sentiments world-over. However, no such luck for investors on Dalal Street. Most market participants believe that foreign investors are likely to withdraw more money from the market. They also believe that the credit crisis in the US is far from over and it may soon lead to a global recession. The bailout package is not the end of our woes It is still not clear what will happen next. Investors have to be patient for some time So, are we really looking at the end of capitalism as some doomsday experts predict? Will the US financial crisis lead to a prolonged global recession? The economic slowdown in the US and Europe is a reality But to think that the stock market is never going to recover is illogical. The market will definitely rebound, but when that w...
Read more

Tax Planning: Income tax and Section 80C

In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:   Provident Fund (PF) & Voluntary Provident Fund (VPF) Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer's contribution. While employer's contribution is exempt from tax, your contribution (i.e., employee's contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free. Public Provident Fund (PPF) An account can be opened wi...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now