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PFC Tax free bonds

PFC Tax-free bonds Oct 2013 issue at highest interest rate

by Holistic Leave a Comment | Filed Under: Tax Free Bonds

Tax-free bonds have been always the best bet for investors. Now, there is even a bigger reason to lap them up. State-owned Power Finance Corporation is offering 8.92% interest rate on its (PFC) tax-free bonds for a period of 20 years.

When PFC Tax Free Bonds Oct 2013 issue is available? :

The PFC tax free bond issue will open from October 14 and run till November 15. Evaluating the response of the investors to the issue, the company may extend it or pre-close it.

Issue size of PFC Tax Free Bonds Oct 2013 issue :

Government has allowed PFC to garner fund up to Rs 5,000 crore through tax-free bonds this financial year. Out of the total, PFC has already mopped up Rs. 1,124.10 crore via private placement on August 30th. The balance fund is to be raised through this PFC tax free bond Oct 2013 issue, with the base issue size of Rs 750 crore and the green-shoe option of Rs. 3,125.90 crore.

Lock-in Period of PFC Tax Free Bonds Oct 2013 issue :

Though you have a lock in period in PFC tax free bonds, you have freedom to sell your bonds anytime after their listing on the stock exchange.

Investment benchmark for PFC Tax Free Bonds Oct 2013 issue :

The minimum investment requirement is Rs 5,000, that is, minimal 5 bonds of Rs. 1,000 face value each. For Retail Investors, the limit is at Rs. 10 lakhs, exceeding which they will be counted as HNIs and will be offered a lower rate of interest.

Open for all: :

PFC Tax free bonds are available for residents, Non Residential Indians (NRIs) and Qualified Foreign Investors (QFIs). NRIs can invest in the bonds on repatriation basis and on non-repatriation basis.

Rating of PFC Tax Free Bonds Oct 2013 issue :

This PFC Tax Free Bonds Oct 2013 issue issue has been rated AAA by three major credit rating agencies, namely, CRISIL, ICRA and CARE. The AAA rating indicates highest degree of safety regarding timely delivery of financial obligations.

Listing of PFC Tax Free Bonds Oct 2013 issue :

Bombay Stock Exchange will list these PFC tax free bonds. You have the option to apply for the PFC tax free bonds either in demat form or physical form what you like.

The PFC tax free bonds will be allotted and listed within 12 working days from the issue closing date. The successful allottees will get interest on their application money as per coupon rates, from the date of realization of application money up to one day prior to the deemed date of allotment, whereas unsuccessful allottees will receive interest @ 5% per annum on their refund money.

Categories of Investors and Allocation Ratio – :

There are four categories of classified investors and each one has a fixed percentage of the issue reserved for the allotment as follows:

Category I is for Qualified Institutional Bidders and 15% of the issue is reserved for them.

Category II is for Non-Institutional Investors and 20% of the issue is reserved for them.

Category III is for High Networth Individuals including HUFs, NRIs & QFIs and 25% of the issue is reserved for them.
Category IV is for Resident Indian Individuals including HUFs, NRIs & QFIs and 40% of the issue is reserved for them.

Coupon Rates of PFC Tax Free Bonds Oct 2013 issue : :

PFC offering is the highest as compared to other three companies, namely, REC, Hudco and IIFCL, who have opened their tax free bonds earlier. PFC tax free bonds have a coupon rate of 8.92% per annum, 8.79% per annum, and 8.43% per annum for 20 years, 15 years and 10 years respectively.

Bonds PFC Series 1 PFC Series 2 PFC Series 3 II FCL Series 1 II FCL Series 2 II FCL Series 3
Tenors 10 years 15 years 20 Years 10 years 15 years 20 years
Interest Payable Annually Annually Annually Annually Annually Annually
Coupon Rates (Retail Investors) 8.43% 8.79% 8.92% 8.26% 8.63% 8.75%
Coupon Rates (Retail Investors) 8.18% 8.54% 8.67% 8.01% 8.38% 8.50%
Equivalent Effective Taxable Yield (30.90% Tax Bracket) 12.20% 12.72% 12.91% 11.95% 12.49% 12.66%
Equivalent Effective Taxable Yield (30.90% Tax Bracket) 12.20% 12.72% 12.91% 11.95% 12.49% 12.66%
Equivalent Effective Taxable Yield 20.60% Tax Bracket) 10.62% 11.07% 11.23% 10.40% 10.87% 11.02%
Equivalent Effective Taxable Yield 10.30% Tax Bracket)

9.40% 9.80% 9.94% 9.21% 9.62% 9.75%

It will become the last issue of PFC this financial year if the issue gets fully subscribed as happened to REC.

What makes PFC Tax Free Bonds Oct 2013 issue an attractive investment? :

Highest Coupon Rates – :

PFC Tax Free Bonds Oct 2013 issue is offering the highest interest rates of this financial year on tax-free bonds. This makes profitable investment for investors in the 30% or 20% tax brackets.

Drop in MSF Rate :

– RBI has reduced the MSF Rate by 50 basis points to 9% few days back. This is a sign that RBI will try to arrest the growth in overall interest rates as much as possible. In addition, the 10-year G-Sec yield has also come down from 8.68% to 8.46% in past few days. If this fall is not transitory and stays for longer period, the fall in the coupon rates of future tax-free bonds will occur.

Caveat :

Despite many positive signs, the financial performance of PFC is not that bright. State Electric boards are its primary borrowers and they have a reputation for not paying back to PFC. This nonpayment has made its share fall from Rs. 350+ during 2010-11 to below Rs. 100 this year. So this must be factored in before investing in this PFC Tax Free Bonds Oct 2013 issue.

However, higher interest rates, tax exemption and issuance from Government backed company make PFC Tax Free Bonds Oct 2013 issue a safe bet.

Bottomline: :

A person who has long term money which he would like to invest in a very safe avenue, this PFC Tax Free Bonds Oct 2013 issue is a best bet for him. When compared to bank FDs, this gives better post tax returns.

Also you need to evaluate your investment plan is completely in sync with your financial plan or not. To create this master financial plan which help you take all other financial and investment decisions of your life, we are offering a

 
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Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

Google Reviews

Jey S
Jey S
24. September, 2021.
I have been using Holistic Investment Planners for the last three years. Mr. Srinivasavaradhan answered all my questions and doubts very patiently during the first free consultation. I was able to clearly define my short-, medium- and long-term goals once I signed up for the comprehensive plan and got their investment plan suggestion to achieve my goals. They are very polite and highly professional whenever I contact them for any queries or make investments. They never pressurize you to invest on their recommended financial products. I would have been lost money by investing directly without their help since I do not have time and knowledge about different financial products. Risk planning is also done as part of financial planning. Truly, they are holistic planners when it comes to your financial planning. They help you to define your life goals, understand your financial resources and establish a plan to invest towards reaching those goals. They do review your plan as you progress to make sure that you are on correct path to achieve those goals. Kudos to the team and keep up the good work!!! I am happy that I found holistic investment planners for my financial planning and management.
aksaswadkar
aksaswadkar
24. September, 2021.
I was about to retire and really not understanding how to invest money to have financial freedom and fulfilling my goals. Was desperately searching on internet way out and fortunately came across Holistic Investment Planners. I read number of articles on their website and realized that this is the agency which I want and engaged their services for my retirement planning. It is an excellent experience to be associated with Holistic. Right from day one our interaction was fantastic and they gave me such a wonderful plan that I had never imagined. I am fortunate enough to be in the client list of Holistic. I have recommended Holistic to my friends as well.
Lionel Faber
Lionel Faber
16. September, 2021.
I've been availing their services for the past year. They are highly knowledgeable in the field and are very patient with all doubts and queries. Personalized financial planning is provided keeping your short term, medium term and long term goals in mind. They do not pressurize you to purchase schemes of their choice. They provide their input and suggestions and leave the decision up to you which shows their honesty and high principle.
Sridhar
Sridhar
8. September, 2021.
Financial planning brings peace in life. Holistic Investment have supported in arriving financial plan based on future goals. My investments are regular since then. They are professionals in their business, will recommend others.
Nitesh Agrawal
Nitesh Agrawal
6. September, 2021.
I have been using Holistic Investment Planners from last one year. The journey has been fantastic. Being a finance person myself I always thought we can look after and plan own finances also. However, due to lack of time and deciplain the things are not always as desired. After joining with Holistic Investment for the first time Icame to know the Financial goals and quantified them. Some dreams were unrealistic based on the earnings and savings so had a reality check. Also got the information and deciplain of investing on regular and more rewarding securities. I definetly suggest to use Holistic Investment Planners. They are professionals, available and hear youor full story before presenting plans. They are flexile in the sense if there are some urgent deviations required, they help to plan the same. For all professionals/individuals I would suggest using professional help of Holistic Investment Planners for best results in long term investment and financial goals achivements. Last advise will be to start early in your life. It really pays well to start in the beginning itself else the dreams needs to adjust :)
Swetha Vasanth
Swetha Vasanth
6. September, 2021.
This is my first year service with the Holistic Team and I would say that they are very much helpful in creating a financial plan and follow ups during the year. I would definitely suggest them if anyone who is willing to proceed with their savings professionally.
Joseph Mathias
Joseph Mathias
6. September, 2021.
I came to know about Holistic Investment Planners online while searching for different investment ideas. Once I contacted them the journey was very smooth. Mr. Ramalingam explained all the aspects of Financial planning in detail and it opened my mind. I realized how important it is to have a Financial planning. Mr. Rajan suggested all the requirements as per my goals and made a Investment plan keeping in mind of my goals. I started my Investment journey with them. I wish I had done it some years back then it would have been in a different level. Review meetings were held every six month to check the implementation of the plan and check the results as per the requirements and to check if any changes required. Overall it was a good experience with Holistic Investment team and would like to continue in the years to come.
Srinvas Kannan
Srinvas Kannan
30. July, 2021.
I came across Holistic investment planners almost 5-6 years back, but I did not have the trust since I had met a few of them who did not sound promising. Then I started investing through a financial advisor of my friend. After 4 years of investing the returns were very low. I was disappointed and started looking for financial advisors when I came across Holistic investment. I had a detailed discussion about my goals and the way they would approach achieving my goal before deciding to switch my investments to them. After a thorough analysis of my then existing portfolios, they suggested new ones and we zeroed-in on 6 schemes/funds where our investment would be split. I am glad I made the decision of switching over and taking Holistic planner's advise, my returns are handsome and I only wish I could have taken their help/advise 5 years back itself. Neverthless, I would like to recommend their services for investment and financial advise if someone is serious about their investments.
Shivaram Andiappan Selvaraj
Shivaram Andiappan Selvaraj
3. July, 2021.
I got a free first time consultation. I got my doubts resolved. They also gave additional advises for investment planning which was also useful.
Nellai B
Nellai B
26. June, 2021.
I have been associated with them for the past three years. They are very professional and polite in answering all our questions. I have complete trust in their suggestions. I strongly recommend for anyone. I am looking forward to have strong and successful association with them.
Google rating score: 4.4 of 5,
based on 61 reviews

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