Why Tax-free Bonds Could Be Your Best Debt Bet This Year

Trang chủ » Nhai N6 Nse » Why Tax-free Bonds Could Be Your Best Debt Bet This Year

Có thể bạn quan tâm

Benchmarks Nifty25,305.85130.45FEATURED FUNDS★★★★★HSBC Large Cap Fund Direct-Growth5Y Return14.34 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return26.86 % Invest NowEnter search text:HomeBUDGETETPrimeMarketsMarket DataMasterclassNewsIndustryZohoSMEPoliticsWealthTechAICareersOpinionNRIPanacheMore MenuStocksNewsLive BlogStock Live BlogEarningsPodcastMarket ClassroomDons of Dalal StreetRecosStock Reports PlusNewMy ScreenerCandlestick ScreenerStock ScreenerStock WatchMarket CalendarStock Price QuotesOptionsIPOs/FPOsExpert ViewsInvestment IdeasCommoditiesViewsNewsOthersMentha OilPrecious MetalsGold MGoldSilverGold PetalSilver MicroSilver MGold GuineaSpicesCardamomOil & EnergyNatural GasCrude OilCrude Oil MiniBase MetalsAluminiumZinc MiniLead MiniCopperZincNickelAluminium MiniLeadPlantationKapasCottonForexForex NewsCurrency ConverterLive Stream!AIF PMSUS StocksCryptoCrypto NewsCrypto TVCrypto PricesMoreBondsDigital Real EstateRealty NewsTechnicalsTechnical ChartVisualizeScreenerMind Over MoneyWeb StoriesMarkets DataThe Golden Thumb RuleUnlisted CompaniesMarket MogulsWebinarsSitemapDefinitionsBusiness News›Markets›Stocks›News›Why tax-free bonds could be your best debt bet this year
The Economic Times daily newspaper is available online now.
Read Today's Paper Why tax-free bonds could be your best debt bet this yearSECTIONSWhy tax-free bonds could be your best debt bet this yearBy Prashant Mahesh, ET BureauLast Updated: Feb 16, 2017, 10:27:00 AM ISTRate StoryGoogle LogoWhatsapp Follow ChannelFollow usShareFont SizeAbcSmallAbcMediumAbcLargeSavePrintCommentSynopsis

RBI signalled that there would be fewer rate cuts ahead, causing bond prices to tumble and in turn leading to erosion in values of long-term debt MF schemes.

ET Bureau
Mumbai: Rich investors are rushing to buy tax-free bonds in the wake of the rise in yields after the Reserve Bank of India's rate-setting meeting last week. The central bank signalled that there would be fewer interest rate cuts going ahead, causing bond prices to tumble and in turn leading to erosion in values of long-term debt mutual fund schemes. Bond prices and yields move in opposite direction; when prices rise, yields fall and vice-versa. “Tax-free bond yields, which stood at 5.9% prior to the monetary policy , rose to 6-6.15%. This is an attractive bet for investors,“ said Vikram Dalal, managing director at Synergee Capital. For example, the NHAI ­ N6, which carries a coupon of 8.75% and matures in Feb 2029, now trades at Rs 1,307, offering a yield of 6.04%. Similarly , IRFC-NE, which carries a coupon of 8.88% and trades at Rs 1,302 maturing in March 2029, now yields 6.15%. With the RBI changing its chance from accommodative to neutral, indicating that chances of a rate cut are low, bond yields rose by 37 basis points in a span of three days after the monetary policy . Financial planners point out that tax-free bonds are far attractive when compared to bank fixed deposits. While a fixed deposit from State Bank of India gives you an interest of 6.75% per annum, which translates into a post-tax return of 4.66% for those in the highest tax bracket, tax-free bonds give 6-6.15%. Also, tax-free bonds enjoy easy liquidity as they are listed on the stock exchanges.ET logo

Live Events

Another aspect which works in favour of tax-free bonds is the lim ited supply available in the market. “The Union Budget did not announce any issuance of tax-free bonds in this financial year, which will cap fresh supply in the primary markets. Hence investors have no other option to buy these bonds other than from the secondary market,“ said Anup Bhaiya, managing director, Money Honey Financial Services. Tax-free bonds were issued in the financial years 2012-13, 2013-14 and 2014-15 with tenures of 10, 15 and 20 years, respectively. All the companies, which raised these bonds, are well managed PSUs, enjoying 'AAA' ratings. Issuers like NHAI, NHB, NTPC, PFC, IRFC, HUDCO and several others raised money through taxfree bonds. These bonds pay halfyearly interest and do not have any put or call options. Add ET Logo as a Reliable and Trusted News SourceGoogle Logo Add Now! Read More News onState Bank Of Indiamonetary policymutual fundNTPCyieldliquidityMumbaiIndiaMarketmarkets

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...morelessRead More News onState Bank Of Indiamonetary policymutual fundNTPCyieldliquidityMumbaiIndiaMarketmarkets

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition
  • Why Boeing is keenly watching Adani-Embraer joint venture?:Image

    Why Boeing is keenly watching Adani-Embraer joint venture?

  • What India’s emerging Balance of Payments crunch means:Image

    What India’s emerging Balance of Payments crunch means

  • What's in a modal verb? A lot. RBI's prescription to make bankruptcy law work:Image

    What's in a modal verb? A lot. RBI's prescription to make bankruptcy law work

  • Can long-stranded gas plants still save Digital India’s power needs?:Image

    Can long-stranded gas plants still save Digital India’s power needs?

  • Stock Radar: Hindustan Unilever forming base after falling over 10% from highs; :Image

    Stock Radar: Hindustan Unilever forming base after falling over 10% from highs; time to buy?

  • F&O Radar| Deploy Bull Call Spread in Nifty to benefit from potential upside:Image

    F&O Radar| Deploy Bull Call Spread in Nifty to benefit from potential upside moves

  • 1
  • 2
  • 3
View all Stories

Most Searched Stocks

IRFC Share Price115.84null%
10:05 AM | 28 Jan 20261.24(1.08%) Upside
Suzlon Energy Share Price46.88null%
10:05 AM | 28 Jan 20261.1(2.39%) Upside
IREDA Share Price129.68null%
10:05 AM | 28 Jan 20260.81(0.63%) Upside
Tata Motors PV Share Price341.55null%
10:05 AM | 28 Jan 20261.0(0.3%) Upside
YES Bank Share Price21.43null%
10:05 AM | 28 Jan 20260.42(1.96%) Upside
HDFC Bank Share Price935.8null%
10:05 AM | 28 Jan 20269.4(1.02%) Upside
NHPC Share Price76.98null%
10:05 AM | 28 Jan 20261.85(2.45%) Upside
RVNL Share Price328.0null%
10:05 AM | 28 Jan 20264.11(1.27%) Upside
SBI Share Price1052.85null%
10:05 AM | 28 Jan 2026-0.31(-0.03%) Upside
Tata Power Share Price352.55null%
10:05 AM | 28 Jan 20264.81(1.39%) Upside
Tata Steel Share Price193.25null%
10:05 AM | 28 Jan 20260.97(0.51%) Upside
Adani Power Share Price134.11null%
10:05 AM | 28 Jan 2026-0.39(-0.29%) Upside
PayTM Share Price1167.6null%
10:05 AM | 28 Jan 202622.8(2.0%) Upside
PNB Share Price122.63null%
10:05 AM | 28 Jan 2026-0.33(-0.27%) Upside
Eternal Share Price257.2null%
10:05 AM | 28 Jan 20263.35(1.32%) Upside
BEL Share Price423.95null%
10:05 AM | 28 Jan 20268.0(1.93%) Upside
BHEL Share Price247.95null%
10:05 AM | 28 Jan 20260.25(0.11%) Upside
Infosys Share Price1670.6null%
10:05 AM | 28 Jan 2026-12.11(-0.72%) Upside
IRCTC Share Price613.2null%
10:05 AM | 28 Jan 20265.71(0.94%) Upside
ITC Share Price322.0null%
10:05 AM | 28 Jan 20263.36(1.06%) Upside
Jio Financial Services Share Price255.35null%
10:05 AM | 28 Jan 2026-0.71(-0.28%) Upside
LIC Share Price811.05null%
10:05 AM | 28 Jan 20263.25(0.41%) Upside
RIL Share Price1397.6null%
10:05 AM | 28 Jan 202617.1(1.24%) Upside
HAL Share Price4450.5null%
10:05 AM | 28 Jan 2026102.0(2.35%) Upside
JP Power Share Price15.28null%
10:05 AM | 28 Jan 20260.44(2.97%) Upside
NBCC Share Price97.46null%
10:05 AM | 28 Jan 20260.62(0.65%) Upside
TCS Share Price3188.3null%
10:05 AM | 28 Jan 202630.31(0.96%) Upside
Vedanta Share Price722.65null%
10:05 AM | 28 Jan 202617.2(2.44%) Upside
Wipro Share Price236.55null%
10:05 AM | 28 Jan 20261.75(0.75%) Upside
Indian Oil Corp. Share Price161.95null%
10:05 AM | 28 Jan 20263.05(1.92%) Upside
Ircon Intl. Share Price157.75null%
10:05 AM | 28 Jan 20262.85(1.84%) Upside
SAIL Share Price154.05null%
10:05 AM | 28 Jan 2026-1.51(-0.98%) Upside
SJVN Share Price72.59null%
10:05 AM | 28 Jan 20261.04(1.44%) Upside
GAIL Share Price164.64null%
10:05 AM | 28 Jan 20264.66(2.92%) Upside
HUDCO Share Price197.72null%
10:05 AM | 28 Jan 2026-0.41(-0.21%) Upside
REC Share Price365.15null%
10:05 AM | 28 Jan 20261.2(0.33%) Upside
Reliance Power Share Price28.35null%
10:05 AM | 28 Jan 20260.93(3.36%) Upside
Tata Technologies Share Price653.25null%
10:05 AM | 28 Jan 20261.86(0.29%) Upside
Vodafone Idea Share Price10.03null%
10:05 AM | 28 Jan 20260.2(2.04%) Upside
Adani Ent. Share Price1978.5null%
10:05 AM | 28 Jan 202619.0(0.97%) Upside
Adani Green Share Price803.7null%
10:05 AM | 28 Jan 20264.61(0.58%) Upside
Adani Ports SEZ Share Price1375.6null%
10:05 AM | 28 Jan 202611.7(0.86%) Upside
Ashok Leyland Share Price192.22null%
10:05 AM | 28 Jan 2026-0.79(-0.41%) Upside
Bank of Baroda Share Price302.2null%
10:05 AM | 28 Jan 20260.2(0.07%) Upside
BSE Share Price2819.2null%
10:05 AM | 28 Jan 202658.0(2.11%) Upside
Canara Bank Share Price153.75null%
10:05 AM | 28 Jan 2026-0.97(-0.63%) Upside
CDSL Share Price1333.5null%
10:05 AM | 28 Jan 202611.41(0.87%) Upside
Coal India Ltd Share Price433.1null%
10:05 AM | 28 Jan 202610.21(2.42%) Upside
HFCL Share Price64.52null%
10:05 AM | 28 Jan 20263.57(5.86%) Upside
IDFC First Bank Share Price82.35null%
10:05 AM | 28 Jan 2026-1.16(-1.38%) Upside
Load more..
Discover the stocks with maximum upside potential based on the key investment themes.
  • UpsidePotential by Sectors*ConstructionConstruction Upto 98% Upside 8 Stocks to Unlock8 StocksRetailRetail Upto 97% Upside 10 Stocks to Unlock10 Stocks View All by Sectors
  • UpsidePotential by India Housing Story*Real EstateReal Estate Upto 95% Upside 16 Stocks to Unlock16 StocksPlyboardsPlyboards Upto 69% Upside 3 Stocks to Unlock3 Stocks View All by India Housing Story
  • UpsidePotential by Top Business Houses*The Mahindra GroupThe Mahindra Group Upto 59% Upside 3 Stocks to Unlock3 StocksThe Adani UniverseThe Adani Universe Upto 58% Upside 5 Stocks to Unlock5 Stocks View All by Top Business Houses
  • UpsidePotential by Market Cap*Small-CapSmall-Cap Upto 97% Upside 232 Stocks to Unlock232 StocksMid-CapMid-Cap Upto 84% Upside 159 Stocks to Unlock159 Stocks View All by Market Cap
  • UpsidePotential by Home Builders*Real EstateReal Estate Upto 95% Upside 16 Stocks to Unlock16 StocksPlyboardsPlyboards Upto 69% Upside 3 Stocks to Unlock3 Stocks View All by Home Builders
  • UpsidePotential by Crude Connection*LogisticsLogistics Upto 53% Upside 10 Stocks to Unlock10 StocksPaintPaint Upto 21% Upside 3 Stocks to Unlock3 Stocks View All by Crude Connection
  • UpsidePotential by Indian Exporters*Gems & JewelleryGems & Jewellery Upto 84% Upside 5 Stocks to Unlock5 StocksPharmaPharma Upto 76% Upside 32 Stocks to Unlock32 Stocks View All by Indian Exporters
  • UpsidePotential by Monetary Policy Play*Pvt BanksPvt Banks Upto 26% Upside 5 Stocks to Unlock5 Stocks View All by Monetary Policy Play
  • UpsidePotential by Rising Disposable Income*RetailRetail Upto 97% Upside 10 Stocks to Unlock10 StocksJewelleryJewellery Upto 84% Upside 5 Stocks to Unlock5 Stocks View All by Rising Disposable Income
  • UpsidePotential by Rupee Play*PharmaPharma Upto 76% Upside 32 Stocks to Unlock32 StocksTextileTextile Upto 61% Upside 4 Stocks to Unlock4 Stocks View All by Rupee Play
* Investments in securities are subject to market risks. These are indicative and should not be interpreted as investment advice or guaranteed returns.AI Awards Attendee RHS BannersLatest from ET
  • Ajit Pawar, Maharashtra Dy CM, dies after plane crash lands
  • India marches into Europe’s $750 billion fortress
  • Indo-US ties face new test after Trump’s jab on UK
Trending in Markets
  • Infosys Q3 Results LiveSensex TodayBharat Coking Coal IPO LiveWhy stock market is falling today
  • Meesho IPO Allotment StatusGroww IPO GMP Live UpdatesNSE HolidaysLenskart IPO GMP Day 3 Live
  • Groww IPO GMP Live UpdatesAdani Power Share PriceTata Capital IPO Allotment Status LiveTruAlt Bioenergy Share Price
  • Tata Motors Share PriceGlottis IPO GMP TodayAtlanta Electricals IPO GMP TodayGK Energy IPO GMP Today
  • Saatvik Green Energy IPO GMPSolarworld Energy Solutions IPO GMPAnand Rathi IPO GMP
The Economic TimesThe Economic TimesEnter search text:BrowseCompanies:ABCDEFGHIJKLMNOPQRSTUVWXYZ123456789

Find this comment offensive?

Choose your reason below and click on the Report button. This will alert our moderators to take action

Name

Reason for reporting:

Foul languageSlanderousInciting hatred against a certain communityOthers

Your Reason has been Reported to the admin.

Xavatar

To post this comment you must

Log In/Connect with:

The Economic Timesor

Fill in your details:

Will be displayed

Will not be displayed

Will be displayed

Share this Comment:

Post to TwitterContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories & personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions & in-depth stock reportsSubscribe NowET

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Sign In to Read for Free

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Sign in & Access ET PrimeImage for Prime BenefitsImage for Prime Benefits

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Avail OfferStudent Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowSubscribe NowAlready a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail OfferAvail OfferPrint Edition Lock Continue with Email Continue with Mobile No. Claim NowAlready a Member? Sign In now

What’s Included with

PrimeETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Read industry-specific stories to identify emerging trends

Spot opportunities with
in-depth insights that matter

Spot opportunities with
in-depth insights that matter

  • Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

    Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

    What Adani’s US indictment means for India Inc’s overseas fundraising

    What Adani’s US indictment means for India Inc’s overseas fundraising

  • Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

    Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

    Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

    Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?

  • Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

    Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

    The problem with lab grown diamonds

    The problem with lab grown diamonds

  • Why a falling rupee is a better option for the economy

    Why a falling rupee is a better option for the economy

    A list of top 20 momentum stocks that have delivered massive returns in one year

    A list of top 20 momentum stocks that have delivered massive returns in one year

2Invest Wisely With Smart Market Tools & Investment Ideas

Investment Ideas

Investment Ideas

Grow your wealth with stock ideas & sectoral trends.

Stock Reports Plus

Stock Reports Plus

Buy low & sell high with access to Stock Score, Upside potential & more.

BigBull Portfolio

BigBull Portfolio

Get to know where the market bulls are investing to identify the right stocks.

Stock Analyzer

Stock Analyzer

Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.

Market Mood

Market Mood

Analyze the market sentiments & identify the trend reversal for strategic decisions.

Stock Talk Live at 9 AM Daily

Stock Talk Live at 9 AM Daily

Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.

3Stay informed anytime, anywhere with ET ePaper

ePaper - Print View

ePaper - Print View

Read the PDF version of ET newspaper. Download & access it offline anytime.

ePaper - Digital View

ePaper - Digital View

Read your daily newspaper in Digital View & get it delivered to your inbox everyday.

Wealth Edition

Wealth Edition

Manage your money efficiently with this weekly money management guide.

4Times Of India Subscription (1 Year)

TOI ePaper

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Read the PDF version of TOI newspaper. Download & access it offline anytime.

Deep Explainers

Explore the In-depth explanation of complex topics for everyday life decisions.

Explore the In-depth explanation of complex topics for everyday life decisions.

Health+ Stories

Get fitter with daily health insights committed to your well-being.

Get fitter with daily health insights committed to your well-being.

Personal Finance+ Stories

Manage your wealth better with in-depth insights & updates on finance.

Manage your wealth better with in-depth insights & updates on finance.

New York Times Exclusives

Stay globally informed with exclusive story from New York Times.

Stay globally informed with exclusive story from New York Times.

5Enjoy Complimentary Subscriptions From Top Brands

Docubay Subscription

Docubay Subscription

Stream new documentaries from all across the world every day.

6Get Inspired by Grandmasters

Martin Shwenk

Martin Shwenk

Leadership | Entrepreneurship
People | Culture

Preview SampleNarayana Murthy

Narayana Murthy

Leadership | Entrepreneurship
People | Culture

Preview SampleAdar Poonawalla

Adar Poonawalla

Leadership | Entrepreneurship
People | Culture

Preview SampleManu Jain

Manu Jain

Leadership | Entrepreneurship
People | Culture

Preview SampleNitin Kamath

Nitin Kamath

Leadership | Entrepreneurship
People | Culture

Preview Sample

Stories you might be interested in

Subscribe to ourET Investment OpportunitiesSUBMIT

Từ khóa » Nhai N6 Nse