Can anyone tell me how can i buy tax free bonds online in India.
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Can anyone tell me how can i buy tax free bonds online in India.
When you buy a bond, you are lending money to an organization or government so they can use it for their purpose and eventually pay you back with interest on a certain date in the future. When this happens, the issuer (the borrower) will place a value (sometimes called face value or par) on the bondRead more
When you buy a bond, you are lending money to an organization or government so they can use it for their purpose and eventually pay you back with interest on a certain date in the future. When this happens, the issuer (the borrower) will place a value (sometimes called face value or par) on the bond that you can use to buy and sell it in the secondary market.
Here are some tips to consider when buying bonds:
The higher the yield on a bond, the riskier it is;
-Bonds are issued with a set maturity date and coupon rate (the total amount paid annually for each $1,000 worth of bonds);
-If interest rates rise then the value of your bond will fall;
-If inflation rises then your bond will lose value because the coupon payments cannot keep up with rising prices;
-Only buy bonds from reliable companies or governments to minimize your risk.
See lessBuying bonds from the secondary market is risky. The first risk of buying a bond from the secondary market is that you don't know what kind of credit rating the company has. If the company goes bankrupt and can't pay back its loan, then you lose your money. Another risk is that the interest rates onRead more
Buying bonds from the secondary market is risky. The first risk of buying a bond from the secondary market is that you don’t know what kind of credit rating the company has. If the company goes bankrupt and can’t pay back its loan, then you lose your money. Another risk is that the interest rates on the secondary market are different than on the primary market, which means it could be possible for you to buy a bond at a low price in order to make more money on it later.
See lessYou can buy tax-free bonds from secondary market in India by registering with Central Government Securities Clearing and Depository Services (CGSDDS) as a primary member. Before you're able to register, you need to fill an application form, pay the registration fee, and provide the necessary KYC docRead more
You can buy tax-free bonds from secondary market in India by registering with Central Government Securities Clearing and Depository Services (CGSDDS) as a primary member. Before you’re able to register, you need to fill an application form, pay the registration fee, and provide the necessary KYC documents. Once you’ve done this, your application will be processed within 10 days. You’ll have the option of buying bonds directly or through an authorized dealer. As soon as this process is completed, you’ll be able to trade on the secondary market.
See lessOne way to buy bonds is through an investor who purchases them on your behalf, such as a broker. Here are some tips to consider when buying bonds: - To invest in bonds that reflect your goals and risk tolerance, you can create a portfolio of different types of bonds. - Consider the term--the lengthRead more
One way to buy bonds is through an investor who purchases them on your behalf, such as a broker. Here are some tips to consider when buying bonds:
See less– To invest in bonds that reflect your goals and risk tolerance, you can create a portfolio of different types of bonds.
– Consider the term–the length of time before a bond matures–and the coupon rate. The longer the maturity, the higher the coupon rate (but also the lower your return).
– If you need income from your investment, use tax-free municipal or state government bonds (or U.S. Treasury obligations or interest at least equal to $10 per year).
– Always read the prospectus for every type of bond you invest in to understand what impact changes in prevailing interest rates could have on their value.
If you want to buy tax-free bonds from Secondary Market, you should take steps as follows: 1) Find a broker or dealer who has a PAN number and is authorised by SEBI 2) Trade over phone or internet with this broker/dealer 3) The broker/dealer will trade on your behalf and deliver the securities at aRead more
If you want to buy tax-free bonds from Secondary Market, you should take steps as follows:
1) Find a broker or dealer who has a PAN number and is authorised by SEBI
2) Trade over phone or internet with this broker/dealer
3) The broker/dealer will trade on your behalf and deliver the securities at a specified time on settlement date
4) Or he can instruct someone else to trade on his behalf and give him the proceeds from sale
See less