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India is a developing economy and in the next decade of so, plans to be a dominating super power. There are robust developmental activities being undertaken across the country and infrastructure projects are at an all time high. One of the best ways to do your bit for the country is to become a part of such developmental activities directly. Yes, you can be an active contributor in the growth of our nation by funding such activities. Known as infrastructure bonds in india, these bonds can be purchased from financial firms and give you good returns on your investment. The issuer, i.e. the financial firm, issues bonds to investors (also known as bearers of the bond) for a fixed period of time after which the investors can give back the bonds and obtain their principal amount along with an interest which has piled up over the years. It’s one of the safest bonds to invest in since the money invested goes out to the government for infrastructural building. There’s hardly a chance that the investment will go awry as compared to investing in stocks and shares, which at times, might just go dead if the company declares bankruptcy. Here are some of the benefits of investing in infrastructure bonds – something that makes it a good investment option: Tax Benefits: Everyone looks for legal ways to save taxes and infrastructure bonds are one such investment that can not only save you from taxes but also ensure that you get good returns on your investment. Under section 80CCF, you are liable to save Rs. 20,000 and this is apart from section 80C that allows deductions up to Rs. 100,000. Growing rate of interest: As our economy will keep on improving, the interest rates obtained on infrastructure bonds will rise automatically. Such attractive interest rates will provide a further impetus to investors. To understand the rising interest rates better, you can call over a financial advisor. They’ve their financial planning calculator and can make you understand the amount of money you will get back after 10 years on the amount you wish to invest. Low investments: Unlike real estate investments where you’ve to put in a lot of money, infrastructure investments can be made with amounts as low as Rs. 5,000. Even the common middle class audience can afford to invest in such projects which will give them returns after years when they are perhaps retiring and need the money. On the other hand, if you wish to purchase real estate, you’ll have to take a loan and pay interests, as a home loan emi calculator would tell you, rather than gaining interest on the investment! With many a benefits, infrastructure bonds are a safe bet for investors.
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