With the current 10-year benchmark trading at a yield of 7.9 per cent, investors could earn an absolute return of 7.5 per cent over a six-month time frame, said analysts.
The AAA-rated NHAI tax-free bond offering 8.52% and 8.75% for 10 and 15 years, respectively, is an attractive investment option for debt investors, say market participants.
“With the rupee stabilising in the range of 60-62 against the dollar, the immediate priority of the RBI will be to focus on increasing growth and lowering inflation.”
Another major component of inflation has been the rising prices of LPG and diesel, which many believe would be halted because of the upcoming elections.
You can invest in any security to avail of the double indexation benefit, the only condition being that the returns come to you in the form of capital gains, not as interest.
Under the long-term debt fund category, retail investors can look at long-dated G-sec funds as they are likely to perform well in the current scenario.”
