Fixed Interest Investments

If you are risk averse and are interested in fixed interest / return investments there are many options. Alternative investments encompass a number of Asset classes which offer fixed returns for a fixed period.

1)         Company Deposits

Company Deposits are borrowings by reputed Public Limited Companies as a supplement to their other sources of funds. They are regulated by Reserve Bank of India with strict norms for prompt payment of interest and repayment of capital on maturity. The key features are:

  • fixed interest coupon rate, interest being paid at periodical intervals or cumulative on maturity
  • fixed tenure , generally 3 three years
  • unsecured
  • the interest income is taxable in the hands of the investor.

We are Agents for following Companies which offer attractive rates of interest.

  • Dewan Housing Finance Corporation Limited (DHFL)
  • Housing Development Finance Corporation (HDFC)
  • Mahindra and Mahindra Financial Services Limited (MMFSL)
  • Sundaram BNP Paribas Home Finance Limited (SBNPPHF)

 2)        Capital Gains Tax 54E Saving Bonds

When assets subject to Capital Gains Tax are sold the investor has the option under Sec.54 (E) to avoid the liability to pay capital gains by investing in these type of Bonds which are specifically notified for the purpose. The following Bonds are available.

Rural Electrification Corporation Limited (REC) – Key Features

  • Credit Rating: ‘CRISIL AAA Stable’
  • Interest: taxable although no TDS is deducted
  • Tenor: 3 years from the deemed date of allotment.
  • Minimum investment: One Bond of Rs.10,000/-
  • Maximum investment: 500 bonds of Rs.10, 000/- each
  • Coupon rate and date of payment: 6.00% (payable annually on 30th June)
  • Transfer:  Non-Transferable.
  • Bonds can be held in Demat /Physical Form
  • Facility of Payment of Interest and Redemption through NECS
  • The Bonds will automatically redeem after expiry of three years
  • Cheque / DD to be drawn in favour of: ‘RURAL ELECTRIFICATION CORPORATION LIMITED – 54EC Bonds’

 National Highways Authority of India – Key Features

 

  • Credit Rating: IND AAA India Ratings & Research and ICRA AAA
  • Face Value & Price: Rs.1000/- per bond
  • Minimum investment: 1 bond of Rs.10000/-
  • Maximum investment: 500 bonds of Rs.10,000/- each. Total: Rs.50 Lacs
  • Maturity: 3 years lockin
  • Interest: 6% payable on 1sst April and on maturity
  • Interest is taxable although no TDS is deducted
  • Repayment: At par on maturity
  • Transfer: Non Transferable, non negotiable and not eligible as security for loan

3)         Tax saving Bonds

From time to time Tax saving Infrastructure Bonds are issued by reputed Public Limited Companies which enjoy additional rebates as per Income Tax Act. 

Contact us for opportunities

4)         Public Provident Fund 

Contact us for opportunities 


 

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