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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.

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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

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

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

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

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Download REC Tax Free Bond Application Forms

Submit filled up application Collection canter near you

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How to apply to REC Bonds?

Apply for REC Tax Free Bonds forms below

Submit the filled up form to Collection canter near you

IDFC Mutual Fund NFO - IDFC Fixed Maturity Plan Yearly Series 49

Posted: 14 Feb 2012 10:00 PM PST

IDFC Mutual Fund has announced that the closure date of the new fund offer of IDFC Fixed Maturity Plan Yearly Series 49 has been extended to February 17.

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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

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

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

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

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Download REC Tax Free Bond Application Forms

Submit filled up application Collection canter near you

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

Apply for REC Tax Free Bonds forms below

Submit the filled up form to Collection canter near you

Religare Mutual Fund - Religare Active Income Plan B

Posted: 14 Feb 2012 09:09 PM PST

Religare MF has announced the change in the minimum application amount of Religare Active Income Plan B. The amount has been reduced to Rs 25,000 per application.

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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

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

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

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

HDFC TaxSaver
ICICI Prudential Tax Plan
DSP BlackRock Tax Saver Fund
Birla Sun Life Tax Relief '96
Reliance Tax Saver (ELSS) Fund
IDFC Tax Advantage (ELSS) Fund
SBI Magnum Tax Gain Scheme 1993
Sundaram Tax Saver

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Application form for Tax Saving Infrastructure Bond and more information

Download HUDCO Tax Free Bond Application Forms

Submit filled up application Collection canter near you

------------------------------------------------
How to apply to HUDCO Bonds?

Apply for HUDCO Tax Free Bonds forms below

Submit the filled up form to 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

Kotak Assured Income Plan

Posted: 14 Feb 2012 08:11 PM PST

Tax Saving Mutual Funds Online

Current open Infra Bond Application form

Kotak Assured Income is a 30-year savings cum protection plan, with a premium paying term of 15 years. As the name suggests, this plan guarantees payment of an annual income to the policyholder starting from the end of the 10th year until maturity, ie, for a period of 20 years. Apart from this guaranteed annual income, the plan will also pay a lumpsum amount on maturity that will be 104-110% of the basic sum assured

The annual tax-free income guaranteed by this plan ranges from about 9.1% to 10.10% per annum of the sum assured, depending upon the amount of annual premium paid by the policyholder. The sum assured (insurance cover) under this plan is 10 times the annual premium. Investors should, however, note that the assured income is payable annually only to the policyholder and not to the nominee.

Kotak Assured Income gives the policyholder the dual benefits of guaranteed annual returns and a lumpsum payment on maturity. This maturity benefit is determined by the age at entry as (110% - 0.1% × Age at Entry) × Sum Assured. Thus for an individual aged 30 years, the maturity benefit will be 107% × Sum Assured. Assuming 30 years as entry age, the returns that will accrue to an individual under this scheme are illustrated below.

The guaranteed annual income payable under the Kotak Assured Income Plan is definitely impressive and so is the maturity benefit, which is a percentage higher than the basic sum assured. In fact, after the 10th policy year, the annual assured income broadly compensates for the premium outgo. If one were to assess the total cumulative returns under this plan, they range from 91% to 108% (absolute gains over 30 years) depending upon the entry age and premium payable by the policyholder. A downside to the scheme, however, is that the annual assured income accrues only to the policyholder and not to the nominee. The nominee is entitled only to the basic sum assured, which is 10 times the annual premium, in the event of policyholder's death before maturity. Kotak Assured Income is thus an impressive savings plan, suitable for those who do not have major medical complications. Those seeking healthy insurance cover should rather opt for a term plan.

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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

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