2. IFCI Infrastructure Bond Series II – Quick Facts IFCI Infrastructure Bond Series II is a long term bond available in two tenures, 5 years and 10 years 5 year tenure bond can be redeemed at the end of 5th, 6th, 7th, 8th, and 9th years Interest rate on bond with 5 year tenure is 8% and 10 year tenure is 8.25% Bond can be purchased online from DMAT account and by filling application form which can be downloaded from IFCI website www.ifciltd.com Investment up to Rs 20,000 is exempt from income tax under section 80CCF of Income Tax Act, 1956.
3. IFCI Infrastructure Bond Series II – Why Invest? Asset Allocation – Your portfolio should have both equity and debt allocation. IFCI Infra Bond gives you good opportunity of add debt to your portfolio. Save Tax – IFCI Infra bond is tax exempt under section 80CCF of Income Tax Act. Savings for different tax slabs will be as under.
4. IFCI Infrastructure Bond Series II – Why Invest? High Rate of Return – The bond is offering high rate of return 8% (5 year option) and 8.25% (10 year option) compound interest, compounded annually. Can be used as collateral – You can use investment in IFCI infra bond as a collateral for taking loan from banks, buy shares etc. Your money will not get “locked up”– For the 10 year option your money will not remain stuck for the entire period. IFCI gives you the option to redeem at the end of 5th, 6th, 7th, 8th, and 9th years.
5. IFCI Infrastructure Bond Series II – Why Invest? Encash the Interest–In a bank FD the yearly interest earned cannot be taken out. But in IFCI infrastructure bond you can choose to get the yearly interest in your bank account. High Effective Interest Rate - Since you get tax exemption effective interest earned is higher. The table below illustrates the point.
6. IFCI Infrastructure Bond Series II – Who Can Invest Any Indian citizen can invest in IFCI Infra Bonds However NRI cannot apply for this issue You can apply even if you have invested in other infrastructure bond issue this financial year but you will not get tax exemption if you have reached the limit of Rs 20,000
7. IFCI Infrastructure Bond Series II – How Can You Invest? The easiest way is to invest online through your DMAT account. If you don’t have DMAT account you can invest by filling and submitting hard copy of application form. Download the application form from ifciltd.com take a print out – fill and submit at select HDFC bank branch. You can find out which HDFC banks are accepting the application form by walking into your nearest HDFC bank branch. The last date for submitting the application from is 31 December 2010.
