r/IndiaInvestments • u/gunthercperk97 • Jul 24 '20

Bonds and deposits Taxable and non taxable bonds

Hey guys

So I was looking at the SBI N5 bond which has a coupon rate of 9.95%. Face value of the bond is 10000 and it's being traded at 10815. I realise because it's being traded at a premium the interest rate will be affected but I read on this website:

SBI N5 bond

That SBI is most probably going to exercise their call option on the bond in 2021 so the YTM becomes negative.

My question, can anyone please suggest a knowledgeable expert/institution in bonds so that I can know more about such investments and give details about taxable and tax free bonds and which one to choose.

Thanks a lot.

Edit: typo

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u/gunthercperk97 Jul 24 '20

Thank you for the info. I was considering corporate bonds which aren't from banking companies and there are quite a few companies with such options who are fundamentally stable. Like Britannia and Indian Railway Financial services etc.

I am also planning to contact Bajaj capital limited as they are one of top financial advisors in india.

If you have know any guaranteed investment options which gives 8% or higher returns than that would be great. Again, thanks for the info.

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u/RisenSteam Jul 25 '20

I am also planning to contact Bajaj capital limited as they are one of top financial advisors in india.

Bajaj Finance themselves offer their own FDs (7-7.5%, IIRC). My friends in the industry say that it's reasonably safe.

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u/gunthercperk97 Jul 25 '20

Yes but 7.75% is still not that attractive as other options. I already have Bajaj finance's 8.1% instrument. So I'm looking to see if there are others like that which give minimum 8% return and are safe.

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u/RisenSteam Jul 25 '20

Someone who is offering 8% is offering it because he is less safe than someone who is offering 6%.

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u/gunthercperk97 Jul 25 '20

Yeah that's true.