Sep 06, 2013, 12.43 PM | Source: CNBC-TV18

Find out: The best tax-free bonds to invest in

In an interview to CNBC-TV18, Anil Rego of Right Horizons discusses the best tax free bonds to be invested in.

Anil Rego of Right Horizons advises to investors on CNBC-TV18 about the best tax free bonds to invest in. He recommends investing in Rural Electrification Corporation ( REC ) with a 15-year investment duration upto Rs 10 lakh.

Also read: Why you should fill out your own insurance policy form

Below is the edited transcript of his interview to CNBC-TV18.

Q: What are the best tax free bonds currently to invest in?

A: Right now, Rural Electrification Corporation ( REC ) is open and many of them are also to follow. There is nothing much between them as interest rates will be similar. The bonds come with a 10-15 and 20 year options and there are different interest rates.

If one’s investment is above Rs 10 lakh or it is Rs 10 lakh and below then the best investment size is to invest is Rs 10 lakh. So you come under individual category and do not get clubbed into the high net worth individuals (HNIs).

Even if one has large sum of money to invest then rather phase it over the multiple bond issues. It is definitely a good investment to make because on post tax basis one gets 8.71 percent which on pre tax basis is 12.55.

It means if a bank fixed deposit gave 12.55 percent then you would get 8.7. So, definitely a good thing to use and I would suggest looking at 15 years and investment up to Rs 10 lakh.

Caller Q: The lock-in period for LIC Money Plus policy is over. Should I continue with the plan or surrender it?

A: The period where he already has is high; loads are over. So he rather keeps it maybe watch out for a point when market is doing better. Right now his negative is a combination of whatever loads he paid plus market volatility.

So, one could probably wait out for a better market condition and then exit and move into options like balance funds as that will also have some bit of equity and you can choose any of the good performing balance funds.

Set email alert for


Ask the Experts

Get your Personal Finance queries answered

  • Q

    i have been investing in the follwoing MF for the past one year should i contiune or switch to other funds. 1 Axis equity fund direct(g) 2 Axis gold fung direct (g) 3 Birla Sun Life Dynamic Bond Fund - Retail Plan dirct (g) 4HDFC Mid-Cap Opportunities Fund (G) 5 ICICI Prudential Dynamic Plan - Direct Plan (G) 6 ICICI Prudential Top 200 Fund (G) advice if i have to switch, all are for long term


    All the schemes look fine and you may continue. The amount that you invest in respective schemes is not known, so just make sure you have al...

  • Q

    i want to investment in 60 lacs invest in mutual fund and i accept 16 percentage return per year my goal after 10 years 2.80crs what is possible please true guide


    Equities over a long term are expected to give a return of 14-17%. Sensex has given a return of approx. 17% since inception i.e 1979-80 till...

  • Q

    Iwant to invest rs10l free of risk ! Shd i go for bank fd's or as the bank suggest " guaranteed income plan" ? Please guide .


    Yes bank returns are fixed....

  • Q

    My daughter 18 yrs. old is studying at IIT Madras for engineering. She is a tax payer in the 20% slab. I wish to get her a LIC policy at an early age. The agent recomends JEEVAN ANAND from LIC of India. Kindly advise the best options.


    Hello, Jeevan Anand is a with-profit plan by LIC which has an insurance component as well. It is always recommended not to mix insurance and...

  • Q

    I am 40 years old working in private company. Want to invest open ended fund Rs. 2000 per month. Kindly suggest


    The scheme that you should invest into would depend upon your time horizon. If you can stay invested for long term ( 7 yrs + ) then you shou...

  • Q

    I am planning to invest a lumspum of Rs 10000 in Mutual Fund for 2 years horizon. Please suggest me some good funds which will provide me maximum returns. I am ready to bear the risk. Would appreciate your advises. Thanks


    For a period of 2 years, I would suggest that you invest in a dynamic bond fund. However, since you have mentioned that you wish to take ris...

  • Q

    Dear sir/madam i am Dhananjay Surve from mumbai .I have got placement through my engineering college and working sience last 2 months .Ia am 22 years old ,i s investing in sip is good for me .As iam looking for time period of 3 to 5 years from now for investment ,which will be the best fund and what other investment option will be best .i am looking for 2 to 2.5 k per month investment.


    Invest the entire amount in a balanced fund. Its a good way to get an understanding about mutual fund working and investments. Invest in Tat...

Explore Moneycontrol

Copyright © Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of is prohibited.