Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

How Much Can I Invest in Tax-free Bonds?

Ramalingam Kalirajan |7758 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Aug 30, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more

Asked by Anonymous - Jul 30, 2024Hindi

Money

I want to liquidate some of my FDs and invest the corpus in Tax-free bonds. Can you please suggest some good bonds to invest? Is there a cap on how much I can invest on the bonds?

Ans: Tax-free bonds can be a great option for generating tax-efficient income. These bonds typically offer stable returns with the added benefit of tax-free interest.

Investment Cap:
There's no upper limit on how much you can invest in tax-free bonds, but these bonds are often available in limited quantities during their issuance period. They are also traded in the secondary market.

Suggestions:

Look for bonds issued by government-backed entities like NTPC, NHAI, or PFC. These offer safety and decent returns.

Compare the yield to maturity (YTM) and consider the remaining tenure before investing.

Tax-free bonds are usually long-term, so ensure they align with your investment horizon.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

MoneyReply

You may like to see similar questions and answers below

Vivek Lala | Answer |Ask -Follow

Tax, MF Expert - Answered on Aug 19, 2023

Asked by Anonymous - Jul 24, 2023Hindi

Money

I am a woman, 68 yrs. My investments in HUCO tax free bonds, Tranche 2 and IIFCL tax free bonds, Tranche 2 are getting matured shortly after 10 yrs of investment with Annual interst payment options @8% approx. Please suggest where these corpus of Rs 7 lakh could be invested for a time span of 5yrs max with similar interest payment option. How about Shriram Motor Finance FD scheme for 60 months and SCSS 2004 or, alternatives excluding Mutual Funds? Thanks.

Ans: Hello, my suggestion for you would be to understand more about the debt markets and how they function and how you can use the mutual funds ( debt ) to get the necessary returns you are looking for with an additional gain due to fall in the interest rates as returns and rates are inversely linked.

Kirtan A Shah |77 Answers |Ask -Follow

MF Expert, Financial Planner - Answered on Sep 11, 2023

Question by Ritesh - Sep 08, 2023Hindi

Money

Hello, Does investing in Govt Bond Funds from Mutual funds instead of FDs assist you to save more on Tax and get better long term returns. How can we invest in Government Bond funds and which one are recommended. Thanks

Ans: Mutual Fund is a better option not from a tax perspective but liquidity perspective. You will be able to exit before the maturity if at all you want too. The disadvantage is, the market price is visible every day & you will have to control your emotions & not transact.

Ramalingam Kalirajan |7758 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Question by Girish - Jul 08, 2024Hindi

Money

Instead of FD, are corporate bonds are safe investments. Which are good corporate bonds which can yield better interest than FD, so that i can invest 50K and what are platforms to invest in corporate bonds.

Ans: Bond funds pool money from many investors to buy a diversified portfolio of bonds. These can include government, corporate, and municipal bonds. Bond funds offer better diversification and professional management compared to individual bonds.

Safety of Bond Funds
Diversification
Bond funds invest in a variety of bonds. This reduces the risk compared to investing in individual corporate bonds.

Professional Management
Bond funds are managed by experts who make investment decisions. This can enhance returns and reduce risks.

Choosing Good Bond Funds
Credit Quality
Invest in bond funds with high credit quality. Funds that invest in high-rated bonds are safer.

Fund Performance
Look at the historical performance of the bond fund. Consistent returns indicate good management.

Expense Ratio
Check the fund's expense ratio. Lower expenses mean more returns for you.

Benefits of Bond Funds over FDs
Higher Returns
Bond funds often provide higher returns than fixed deposits. They invest in a mix of high-yield bonds.

Diversification
Bond funds offer diversification across different types of bonds. This reduces the overall risk.

Liquidity
Bond funds are usually more liquid than individual bonds. You can buy or sell them on any business day.

Disadvantages of Direct Funds
Direct funds may have lower fees, but regular funds offer significant benefits:

Expert Management: Certified Financial Planners (CFPs) provide tailored advice.

Active Oversight: Regular funds are actively managed by professionals.

Market Guidance: CFPs help navigate market fluctuations and maintain investment discipline.

Final Insights
Research Thoroughly: Choose bond funds with high credit quality and good performance.

Diversify Investments: Diversify across different types of bond funds.

Seek Professional Advice: A Certified Financial Planner can provide expert guidance.

Your interest in bond funds is commendable. With proper research and guidance, they can enhance your investment portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Latest Questions

Rajesh Kumar Singh |47 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Feb 01, 2025

Asked by Anonymous - Feb 01, 2025Hindi

Career

I am an HR recruiter with 18 years experience. Been unemployed for past 2 years as companies expect team lead, managerial experience, but I have worked as an individual contributor only. Still looking for a job and feel burnout/ depressed. I have read about prompt engineer roles. Can I take this course? I want to focus on non technical aspects of prompt engineer as I don't know anything about coding. Also my age is 47, will companies be willing to give me job in this field even if I get certified? Please help.

Ans: Try in startup. Changing profile at 47 not advisable

Dr Nagarajan Jsk |224 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Feb 01, 2025

Question by Rose - Dec 27, 2024Hindi

Career

Hello. Can you tell me how to come dubai as a doctor after completing mbbs frpm Bangladesh? Or how to come there for PG?

Ans: Hi Rose,

Your query is incomplete. Could you please let me know your nationality and where you completed your medical studies? Did you also complete your internship?

Providing this information will help me offer you better suggestions.
with regards

Poocho. Life Change Karo!

Dr Nagarajan Jsk |224 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Feb 01, 2025

Question by Nandu - Nov 16, 2024Hindi

Career

I have completed my msc in biochemistry n now doing internship but I am confusing about my future because I see this field don't pay me inuff for life even for future... N don't have more jobs in Maharashtra. I don't like production jobs but in Pharma only production pay much so what can I do .. Can u suggest me which job is high payable after Msc biochemistry

Ans: Hi Nandu,

Greetings!

Could you please let me know which year you completed your course and whether you are currently doing an internship or apprenticeship? An internship is part of the curriculum, where students gain practical training, sometimes with a stipend and sometimes without. After completing your course, you can opt for an apprenticeship, which typically lasts one to one and a half years and includes a stipend, usually split 50%-50% between the industry and government.

If you are in the internship phase, please inform me about the specific field you are working in. Initially, you may not expect a high salary, but after gaining expertise in your field, your compensation will improve. Typically, this takes about three years, so it’s important to focus on skill acquisition for a better future.

If your internship aligns with your field of study, I encourage you to continue and consider starting a medical lab or exploring opportunities in medical devices related to biochemistry. However, pursuing a career in pharmaceutical production may not be suitable for you, as it is a different field, and you may find it challenging to grasp the processes involved since you are currently inexperienced in that area.

Please share the specific field of your internship, and I would be happy to provide more tailored advice.
with regards

Poocho. Life Change Karo!

Radheshyam Zanwar |1168 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Feb 01, 2025

Question by Shubhankar - Feb 01, 2025Hindi

Career

if i am failed in my boards exam after giving re test can i give neet exam ??

Ans: Hello Shubhankar.
Generally, the board exam results are declared after the NEET exam is over. Hence you can appear in the NEET exam without any hurdle or hesitation.
If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

Sushil Sukhwani |576 Answers |Ask -Follow

Study Abroad Expert - Answered on Feb 01, 2025

Question by Benish - Sep 05, 2024Hindi

Career

I have done my bachelors in Physiotherapy now I want to do masters in abroad but dont want to do in physiotherapy suggest some other options in career is this possible i can go in arts field

Ans: Hello Benish,

Thank you for contacting us. To answer your question, yes, it's definitely possible to pursue a master's abroad in a different field, even after completing your Bachelor's in Physiotherapy! Many students choose to pivot to new career paths based on their interests. Since you're interested in the arts, you could consider programs in fields like design, media studies, or even psychology. You can also explore various options like pursuing a Master's in Healthcare Management, Public Health, or even Arts Management, which could combine both your healthcare background and your interest in the arts. The key is to identify a field that excites you, research programs that align with your skills, and be open to gaining any additional qualifications if necessary to make the switch!

For more information you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

Sushil Sukhwani |576 Answers |Ask -Follow

Study Abroad Expert - Answered on Feb 01, 2025

Asked by Anonymous - Oct 23, 2024Hindi

Career

Hello sir I'm completed my btech in mechanical engineering Now I want to pursue ms in Ai ml in usa is it possible sir So please clear my doubt I has alot of confusion about these sir

Ans: Hello,

To begin with, thank you for reaching out to us. To answer your question, it’s definitely possible for you to pursue an MS in AI/ML in the USA after completing your BTech in Mechanical Engineering! Since you have a solid background in engineering, you’ll likely have a good foundation in math, algorithms, and problem-solving, which are key in AI/ML. However, you might need to take some additional courses in programming, statistics, or machine learning fundamentals before applying, depending on the program. It’s important to research the specific requirements for the universities you're interested in and make sure you meet their prerequisites, but with the right preparation, your background can actually make you a strong candidate!

For more information you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

Sushil Sukhwani |576 Answers |Ask -Follow

Study Abroad Expert - Answered on Feb 01, 2025

Asked by Anonymous - Aug 27, 2024Hindi

Career

Sir, I am a Nigerian. My Son got a Post graduate admission in Germany (Project Management) with 40% scholarship. He is 22 years old and a great footballer. Is there a future for him in Germany after graduation?

Ans: Hello,

First of all, congrats to your son on his admission and scholarship! To answer your question, Germany offers great opportunities for international students, especially if he's willing to explore the job market after graduation. With a degree in Project Management and a strong football background, he could potentially tap into both the corporate world and the sports sector. He could even combine his project management knowledge with his football interest by working as a football team manager. The key is networking, gaining relevant experience, and possibly learning German, as it would open more doors. His age and athleticism can definitely give him an edge in both professional and sports-related careers in Germany.

For more information you can visit our website: edwiseinternational.com
You can also follow us on Instagram: @edwiseint

Anil Rego |384 Answers |Ask -Follow

Financial Planner - Answered on Feb 01, 2025

Question by Ravi - Feb 01, 2025Hindi

Money

Is NPS from exployee contribtution exempted under new tax regime

Ans: No, the NPS from employee contribution is not exempted under new tax regime. Only employers contribution is exempted under section 80CCD(2).

80CCD (1) - Employee's contribution to NPS - Not available under New tax Regime
80CCD (2) - Employer's contribution to NPS - Available under New tax Regime

Anil Rego |384 Answers |Ask -Follow

Financial Planner - Answered on Feb 01, 2025

Question by Ujjwal - Feb 01, 2025Hindi

Money

In today’s budget- how much tax will I pay if I earn Rs 18 lakhs. Tax on 6 lakh only or as per slabs below 12 lakhs also?

Ans: Income tax is nil only on income upto Rs.12 Lakhs. Considering an annual income of ?18 LPA as salary income, you’ve to pay tax for the entire 18 Lakhs starting from Rs.0 to Rs.18 Lakhs as per slab rate.
So here the standard deduction of ?75,000 is applicable, resulting in a tax liability of ?1,45,250 under the new tax regime. After including the 4% cess, the total tax payable will be ?1,50,800.
If the income is from sources other than salary, the standard deduction will not be applicable.

Anil Rego |384 Answers |Ask -Follow

Financial Planner - Answered on Feb 01, 2025

Asked by Anonymous - Feb 01, 2025Hindi

Money

What would be my tax structure under new regime with CTC of 19 LPA

Ans: Considering your salary income of Rs.19 LPA as salary income, standard deduction of Rs.75,000 is applicable resulting in tax liability of Rs.1,65,000 according to the new tax regime. Post 4% cess your total tax liability will be Rs. 1,71,600.

See more questions »

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x