RBI floating rate bonds offer a low-risk, high-return option
Wealthy investors looking to book profit from equities amid rich valuations and eyeing a fixed income product with high safety are turning to RBI floating rate bonds, which currently give an 8.05% return.
These bonds, issued by the Reserve Bank of India on behalf of the government, earn more than 10-year benchmark government bonds and fixed deposits, distributors said.
«These bonds help you earn a spread of 120 basis points over the 10-year benchmark government bonds, and 50-60 basis points more than fixed deposits,» said Vikram Dalal, managing director, Synergy Capital.
The interest rate of these bonds is linked to that of the National Savings Certificate, a small savings scheme backed by the government. They pay 35 basis points more than the NSC, taking the return to 8.05% now.
The bonds have a tenure of seven years, with interest paid once every six months and the rate reset in July and January.
Stock Trading
Maximise Returns by Investing in the Right Companies
By — The Economic Times, Get Certified By India's Top Business News Brand
Stock Trading
Market 104: Options Trading: Kickstart Your F&O Adventure
By — Saketh R, Founder- QuickAlpha, Full Time Options Trader
Stock Trading
Technical Analysis for Everyone — Technical Analysis Course
By — Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities
Stock Trading
Stock Markets Made Easy
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Renko Chart Patterns Made Easy
By — Kaushik Akiwatkar, Derivative Trader and Investor
Stock Trading
Market
