Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Monday 20 May 2013

Inflation Indexed Bond to inflation proof your wealth

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

20% of each issue will be for retail investors

INFLATION-indexed bonds, proposed in this year's budget, will be launched on June 4. One of the objectives of the bonds is to provide an alternative financial instrument to wean household investors away from gold.

On that day sale of bonds worth between Rs 1,000 crore and Rs 2,000 crore will begin, to be followed by monthly sale of an equal amount on the last Tuesday of every month. The government will issue up to Rs 15,000 crore of such bonds this financial year.

This first series of the bonds will be issued till September, which will help determine the coupon rate for the bonds through auction. This will also help in benchmarking the bonds, according to a government statement.


These will be mostly for institutional investors like pension funds, insurance and mutual funds. Only 20 per cent will be sold to retail investors.

Based on the experience from the first series, a second series exclusively for retail investors will be issued in October. The terms of issue for retail investors will be announced later.

Inflation-indexed bonds, also known as inflation linked bonds are debt instruments where the principal is usually indexed to inflation. They are designed to mitigate the inflation risk of an investment.


Such bonds came into be ing for the first time in England in 1780. Various nations have issued such bonds worth over $1.5 trillion in the global debt market. Generally, these are sovereign bonds.

The bonds, to be issued by the Reserve Bank of India, will have 10-year maturity and index the principal to the wholesale price index with a four month lag.


The coupon rate will be fixed, according to the government statement. The bonds will be tradable in the secondary market.

The first series is open only to financial institutions so as to increase liquidity and for appropriate price discovery.

At present, retail participation in government securities is allowed only up to 5 per cent of an issue. In the case of inflation-indexed bonds this has been enhanced to 20 per cent to allow more retail participation.

Similar bonds did not work earlier in India because they were not fully indexed; nor were they marketed properly.

The statement said the bonds would have real coupon rate and nominal principal value adjusted against inflation. Periodic coupon payments will be made on the adjusted principal. Thus these bonds will provide inflation protection to both principal and coupon payment. At maturity the adjusted principal or the face value, whichever is higher, will be paid.

The coupon rate will be announced at the time of bonds issue.

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

No comments:

Post a Comment

Mutual Fund Application Forms Download Any Applications
Invest in Tax Saving Mutual Funds Invest Online
Infrastructure Bond Application Forms Download Applications

Popular Posts