This month is dedicated to tax free bonds. After REC bond last month, this month we have option to invest in IIFCL 8.75%, NHPC 8.92% and PFC 8.92 % Tax free bonds. As multiple tax free bonds are available in market it is but oblivious question which one is best for investment.
We are herewith comparison between NHPC, PFC and IIFCL tax free bonds.
| Issued By | Tenure | Interest Rate | Rating | Closing Date |
| Power Finance Corporation(PFC) |
10, 15 and 20 years |
8.43%, 8.79% and 8.92% |
CARE AAA |
11-Nov |
| National Hydroelectric Power Corporation(NHPC) |
10, 15 and 20 years |
8.43%, 8.79% and 8.92% |
CARE AAA |
11-Nov |
| India Infrastructure Finance Company Ltd (IIFCL) |
10, 15 and 20 years |
8.26%, 8.63% and 8.75% |
CARE AAA |
31-Oct |
IIFCL & PFC tax free bond is already open for investment while NHPC tax free bonds issue will open from October 18th. PFC and NHPC is offering highest rate so far.
NHPC PFC & IIFCL Tax Free Bonds Comparison:-
As per above comparison it is quite clear that PFC and NHPC is at par with each other. Both of them are good investment option providing highest effective yield. Investing your money in this tax free bonds not only bring high tax free return but also provide you protection against inflation.
What is your opinion about investing in Tax free bonds? Do share your experience with us.