Nov 2017 Economic Times
“We expect the 10-year benchmark to rise to 7-7.25%, as inflation could rise from here, and trade deficit could be higher due to a rise in oil prices.”
Wealth managers suggest investors keep in mind risks of investing in such bonds.
“Some worried investors are making queries of their investments in such schemes.”
Some financial planners suggest investment in Government of India’s 8% Savings (Taxable) Bonds, which offer an interest rate of 8 per cent per annum.
Investments in tax-free bonds in the past year would have fetched you as much returns as mid and small-cap equity schemes -the best performing mutual fund category. The bonds have returned 25-27% on an annualised basis led by a sharp rally in the bond market of late.