Infrastructure is the basic asset of the economy to function adequately. India’s First Online Infrastructure Bonds Investment Financial Advisory explains that Infrastructure is the fundamental amenities and structures serving a country or city.
Infrastructure Bonds are generally issued by non-banking financial companies and institutions. Infrastructure bonds are long term bonds which invest in governments’ infrastructure projects. Companies that issue these bonds play the role of mediators in the sense that they borrow from investors and lend it to the government to invest in long-term gestation projects.
So, what are Infrastructure Bonds?
Infrastructure bonds are implemented so as to fund infrastructure projects like construction of roads, improvement of water supplies, generating power, and so on. India’s First On call Infrastructure Bonds Investment Advisory informs you that such bonds give tax benefit as the government advocates infrastructure development and investments through these bonds.
The lock-in period is 5 to 7 years while the maturity period is 10 to 15 years. The buyback option is available to the investor after the lock-in period.
Features of Infrastructure Bonds
- Resident Indians are eligible to invest (not NRIs)
It must be noted that Resident Indians can invest in Infrastructure bonds, but Non Resident Indians (NRIs) aren’t eligible to do so.
- One should be above the age of 18 to invest
If you want to invest in Infrastructure bonds, you have to be above the age of 18. Minors aren’t eligible to invest in corporate Bonds.
- Capital Protection
The wealth invested in Infrastructure Bonds is safe and protected. Therefore you don’t have to worry about the invested amount disappearing, etc.
Merits of Infrastructure Bonds
- Higher returns than other investment avenues
Infrastructure bonds usually provide higher rates of interest than most other investment avenues. Do have a look at Infrastructure Bonds.
- High Interest rates
Infrastructure Bonds offer higher interest rates too, typically 8% to 10% interest rates.
- Lower risk
Issuing companies often have high credit ratings. Therefore, the risk is comparatively lesser.
- Lesser volatility
Stocks usually carry a lot of volatility. Bonds are comparatively less risky as they carry lesser volatility.
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