TAX FREE BONDS WITH SECURED FIXED INCOME

 

Bond Offerings - August 2026 AAA & AA Rated Bonds | Available on Centicity Dear Investors,   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. Issuer / Bond Series Credit Rating Security / Backing Original Coupon (%) Indicative Effective Annual Return (YTM % Tax-Free) Pre-Tax Equivalent Return (at 30% Slab + Cess) Approximate Maturity NHAI (National Highways Authority) AAA Senior Secured (Govt Assets) 7.60% – 8.75% 5.20% – 5.55% 7.55% – 8.06% 2029 – 2031 IRFC (Indian Railway Finance Corp) AAA Senior Secured (Rolling Stock) 7.34% – 8.63% 5.20% – 5.40% 7.55% – 7.84% 2028 – 2029 REC Limited AAA Senior Secured (Loan Assets) 7.93% – 8.71% 5.25% – 5.50% 7.63% – 7.99% 2027 – 2029 PFC (Power Finance Corp) AAA Senior Secured (Infra Assets) 8.20% – 8.92% 5.30% – 5.55% 7.70% – 8.06% 2028 – 2033 HUDCO AAA Senior Secured (Urban Infra) 7.64% – 8.51% 5.30% – 5.50% 7.70% – 7.99% 2027 – 2032 NTPC / NHPC AAA Senior Secured (Power Assets) 8.10% – 8.91% 5.25% – 5.45% 7.63% – 7.92% 2033 – 2035 Crucial Distinctions 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.

Share: