Skip to main content

Hudco tax free bond up to 8.7% yield

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)
 

 

 

Third tax-free bond issue, worth Rs 5,000 crore, will be sold from September 17 to October 14, reports Ravi Ranjan Prasad TAX-FREE bonds are slated to hit the market back to back as the public sector undertakings try to raise money from public to fund India's starved growth story.

 

Besides issue size that has plenty for every one, the yields are getting better by the day, and not even imagined six months back when investors and analysts thought interest rates were poised to fall.

Housing and Urban Development Corporation's (Hudco) tax-free bonds are offering an interest rate of as high as 8.76 per cent to retail investors and 8.51 per cent to qualified institutional buyers (QIBs), corporates and high net worth individuals.

Hudco's third consecutive tax-free bond issue to raise up to Rs 5,000 crore this financial year will be open for subscription from September 17 to October 14, the company announced on Monday.

These bonds are secured, redeemable, non-convertible debentures each of Rs 1,000 face value and enjoy immunity from income-tax on interest earned under Section 10(15)(iv)(h) of Income Tax Act, 1961.

The state-owned lender to housing and infrastructure sector will is planning to raise Rs 750 crore in tranche I, with an option to retain oversubscription up to Rs 4,809.20 crore. It has already raised raised Rs 190.80 crore on a private placement basis.

Retail individual investors investing up to Rs 10 lakh will get a coupon rate of 8.39 per cent for 10-year bonds, 8.76 per cent for 15year and 8.74 per cent for 20-year bonds.

Those individual investors investing above Rs 10 lakh will be treated as high net worth investors and

will be offered a coupon rate of 8.14 per cent for 10 years, 8.51 per cent for 15 years and 8.49 per cent for 20 years at par with the rate offered to the QIBs and the corporates.

The yield from Hudco tax-free bonds are a tad higher than just concluded Rural Electrification Corporation (REC) tax-free bonds that offered retail investors 8.26 per cent for 10 years, 8.71 per cent for 15 years and 8.62 per cent for 20 years.

The allocation of Hudco tax-free bonds will is highly tilted in favour of retail investors who will be allotted 40 per cent of the issue size and another 30 per cent will be allotted to high net worth individuals. Corporates will be allocated 20 per cent of the issue size, while QIBs will be allocated 10 per cent of the issue size.

Achal Gupta, assistant general manager (finance), Hudco, said, "There is no put and call option indicating the bonds will not be recalled earlier and these bonds will have mature only after 10, 15 and 20 years." Hudco's tax-free bonds have got a credit rating of AA plus from CARE and India Ratings and Research. The bonds are proposed to be listed on BSE.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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

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

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

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Jeevan Labh

 The Life Insurance Corporation of India has announced Jeevan Labh , its limited-premium, with-profits endowment plan .   It comes with a premium paying terms of 10, 15 and 16 years for corresponding policy tenures of 16, 21, and 25 years respectively. ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan Invest in Best Performing 2016 Tax Saver Mutual Funds Online Invest Online Download Application Forms For further information contact Prajna Capital on 94 83...
Read more

Liquidity Adjustment Facility

Liquidity adjustment facility (LAF) is a money market tool used by the central bank of a country (in India it is the Reserve Bank of India ), to infuse funds into the country's banking system when liquidity dries up. Again, in case there is excess liquidity, the central bank uses some tools to help banks manage their surplus liquidity. Usually the RBI uses the repurchase facility (called Repo ) to give short-term loans to banks to meet their temporary liquidity shortage. On the other, hand RBI uses reverse repo facility to help banks park their excess liquidity with it. Banks usually use various securities, which are approved by the RBI, as collateral when they take money from the RBI to meet their short term liquidity requirement     Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara...
Read more

Tata Dynamic Bond Fund exit load

Tata Mutual Fund has revised the exit load of Tata Dynamic Bond Fund to 0.50 per cent if redeemed on or before 180 days. Currently, there is no exit load. The effective date is March 25, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed...
Read more

Home Loans that Save Time and Money

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Home Loans that Save Time and Money  You can deposit surplus money in these special home loan schemes and reduce your loan tenure significantly in the process   IF YOU are thinking of taking a home loan and are confident of generating a surplus every month after paying the regular EMI, you can opt for loan schemes with an overdraft facility that not only cut interest payments significantly, but also reduce the loan tenure. State Bank of India, Standard Chartered Bank, HSBC and Central Bank of India offer such home loan products. Under the scheme, as a home loan borrower, you can deposit any surplus that you have into the home loan account, though you retain the option of withdrawing the sum, if required. By depositing an amount higher than your EMI , you save on interest outgo. The principal amoun...
Read more

Tata Mutual Fund changes its in Benchmark Indices for few funds

Tata Mutual Fund has approved the changes in benchmark indices of seven funds, with effect from August 01, 2011. The schemes would now be benchmarked against the following indices:   Scheme Names    Existing Benchmark    Proposed Banchmark Tata Dividend Yield Fund   BSE Sensex   S&P CNX 500 Index Tata Equity Opportunites Fund   BSE Sensex   BSE 200 Index Tata Growth Fund   BSE Sensex   CNX Midcap Index Tata Indo Global Infrastructure Fund   BSE Sensex / MSCI World   S&P CNX 500 Index / MSCI World Tata Infrastrucute Fund   BSE Sensex   S&P CNX 500 Index Tata Infrastrucute Tax Saving Fund   BSE Sensex   S&P CNX 500 Index Tata Life Sciences & Technology Fund   BSE Sensex   S&P CNX 500 Index         -----------------------------------------------------------------   Also, know how to buy mutual funds online:   Inve...
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