Career Search

Monday, April 22, 2013

Inflation indexed bonds may be issued within a month

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Inflation-indexed bonds will help investors hedge their savings against inflation

THE Reserve Bank of India (RBI) is expected to launch within month the inflation-indexed bonds (IIBs), with seven to 15 years maturity, which will help investors hedge their savings against inflation.

"This was announced in the budget. We have also announced in our auction calendar and we hope (to issue IIBs) within a month's time," RBI deputy governor H R Khan said on the sidelines of an event organised by National Housing Bank here.

"Bonds will have their own guidelines and features. As of now it will be linked to wholesale price index. Every six months, it will be indexed," he said.

Khan said there are one or two design features that are being discussed with the government.

On the maturity period of these bonds, Khan said it would range between seven and 15 years.

"Right now, the plan is that it will be issued like any other government security... What we are proposing is that non-competitive portion (retail portion), we have higher percentage of bidding, it could be 10 per cent, it could be 15 per cent, or 20 per cent. So, it will be earmarked for the small fellows, trusts or individual, those who have gilt accounts," he said.

Retail investors can get the bonds without participating in the auction at the cut-off price, Khan said.

"Then after few months, we will think of some certificate based on this," he added.

The central bank, for some time, has been planning to introduce IIBs to wean away investors from gold as a hedge against inflation.

Finance minister P Chidambaram in the budget speech had said: "I propose to introduce instruments that will protect savings from inflation, especially the savings of the poor and middle classes. These could be inflation indexed bonds or inflation indexed national security certificates." On external commercial borrowings (ECBs) for affordable housing, Khan said: "We have come out with the $1 billion scheme and this year we are going to continue that." He further said that RBI will adopt "a cautious approach because housing doesn't generate foreign exchange." "So, we have to see that we have really viable projects and we don't get into difficulty. We have to balance the requirement as well as the currency mismatches. We have to take a balanced approach," he added.

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 PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest 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 MutualFundsInvest 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: