Rating | “AAA/Stable” from CRISIL and “AAA with stable outlook” from ICRA | |||
Face Value | Rs. 5,000/- per bond | |||
Minimum Application | Rs. 5,000/- (i.e. 1 Bond) | |||
Issue Schedule | Issue Open Date : September 29,2011
Issue Close Date : November 04, 2011 |
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Options for Subscription | 1 | 2 | 3 | 4 |
Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative |
Coupon (% p.a.) | 8.50 % p.a. (Annual compounding) | 8.50 % p.a. | 8.75 % p.a. (Annual compounding) | 8.75 % p.a. |
Maturity Amount | Rs. 5,000 | Rs. 11,305 | Rs. 5,000 | Rs. 17,596 |
Tenor | 10 years | 10 years | 15 years | 15 years |
Maturity Date | December 2021 (Tentative) – 10 years from date of allotment | December 2026 (Tentative) – 10 years from date of allotment | ||
Buyback option | Yes | Yes | Yes | Yes |
Lock-in period | 5 years from the deemed date of Allotment | |||
Deemed Date of Allotment | To be decided | |||
Issuance & Trading | Bonds shall be issued both in dematerialised form and physical form. However, trading allowed only in dematerialised mode after the expiry of Lock-in Period of 5 years |
Should you invest in PFC Infrastructure bond 2011?
Rate of interest for PPF is 8% while in IFCI Bond you can lock-in your investment for 15 years at 8.75% interest. I think its the right time to invest in PFC Infrastructure bonds.
Your returns would depend on the tax bracket you are. For details on the same Click here.
I think its a decent return and its recommended to lock-in in such tax saving instruments at this high interest rate period.
Some significant points about investing in PFC Infrastructure Bonds:
I suggest everyone in the higher tax bracket to subscribe to the Infrastructure bonds. You may subscribe to this PFC bond or wait for other institutions to issue these kinds of bonds. But by the end of this financial year you must opt to save tax on additional Rs 20,000!
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I am in a dilema - which infrastructure fund I should invest in - PFC or IFCI?
What do you suggest?
PFC has higher interest rates, go for it