Review these fixed-income TOP investment offerings and invest effortlessly using your Centicity account.
Name of Security
Nature
Face Value (Rs.)
Coupon Rate (P.A.)
YTM / YTC
Rating
Years to Maturity (Yrs)
7.45% Mahindra Rural Housing Finance Ltd Ltd 2030
Secured
1,00,000
7.45%
7.27%
CARE - AAA
4.25
7.50% Tata Capital Housing Finance Ltd 18 Apr 2031
Unsecured
10,00,000
7.50%
7.46%
CARE - AAA
4.66
6.88% HDFC Bank 16 Jun 2031
Unsecured
10,00,000
6.88%
6.68%
ICRA - AAA
4.82
7.80% HDFC Bank 06 Sep 2032
Unsecured
10,00,000
7.80%
7.87%
ICRA - AAA
6.04
8.65% MUTHOOT FINANCE LIMITED 12-JUN-2031
Secured
1,00,000
8.65%
8.14%
ICRA - AA+
4.81
9.25% MUTHOOT FINCORP LIMITED 7-JUL-2032
Secured
1000
9.25%
9.13%
CRISIL AA BRICKWORK AA+
5.88
In India, Tax-Free Secured Bonds are AAA-rated Public Sector Undertaking (PSU) debentures where the annual interest received is 100% exempt from income tax under Section 10(15)(iv)(h).
Because the government stopped issuing fresh tax-free bonds after FY 2015–16, these trade exclusively on the secondary market (NSE/BSE, Jiraaf, Wint Wealth, GoldenPi).Due to strong demand from high-tax-bracket investors, they trade at a premium, meaning the effective annual return (Yield to Maturity / YTM) is lower than the face-value coupon rate.
Tax-Free vs. 54EC Capital Gain Bonds:54EC bonds (REC, PFC, IRFC, HUDCO at 5.25% p.a. with a 5-year lock-in) save tax on real estate capital gains, but their annual interest payout is fully taxable.In contrast, the secondary-market tax-free bonds in the table above yield 100% tax-free interest payouts.
Capital Gains on Sale:Only the annual coupon is tax-free.If you buy from the exchange and sell before maturity at a profit, the gain is taxed as capital gains (LTCG at 12.5% if held for over 12 months).
Who Benefited Most:These instruments offer the highest value to investors in the 30% (or surcharge) tax brackets, as matching a 5.50% net return in taxable fixed deposits would require earning over 8.00% pre-tax.
Secured bonds (Non-Convertible Debentures / NCDs) are backed by specific collateral or company assets, giving investors a higher claim priority in the event of default. Returns generally scale inversely with the credit rating.
Issuer / Category
Credit Rating
Security Type
Typical Annual Return / YTM (%)
Payout Frequency
REC / IRFC / PFC (PSU Bonds)
AAA
Senior Secured
7.15% – 7.75%
Annual
Tata Capital / L&T Finance
AAA
Senior Secured
7.50% – 8.10%
Annual / Semi-Annual
Capri Global / Sammaan Capital
AA / AA-
Senior Secured
8.50% – 9.25%
Annual
Muthoot Fincorp / InCred Financial
AA- / A+
Senior Secured
9.25% – 10.25%
Monthly / Annual
Navi Finserv / Fibe (EarlySalary)
A / A-
Senior Secured
10.30% – 11.25%
Monthly / Quarterly
Finnable Credit / Arman Financial
A- / BBB+
Senior Secured
11.30% – 12.00%
Monthly / Per Schedule
Keertana Finserv / High-Yield NBFCs
BBB / BBB+
Senior Secured
12.00% – 12.90%
Monthly / Annual
Key Considerations Before Investing
Credit Risk vs. Security: While "Secured" means the bond is backed by asset cover (often 1.0x–1.25x), liquidating collateral in a default scenario can take considerable time.
Tax Treatment: Coupon income is taxed according to your applicable slab rate.
Secondary Market Liquidity: Most listed corporate bonds trade on platforms like Jiraaf, Wint Wealth, or GoldenPi, but secondary trading volumes can vary significantly compared to sovereign securities.
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