IDBI India Top 100 Equity Fund NFO: Review Analysis & Details

Details about IDBI India Top 100 Equity Fund: Review, Analysis, Details & Investment Opinion.
A new equity or stock based mutual fund is going to enter the Indian markets. The fund belongs to IDBI mutual fund house and is called the IDBI India Top 100 Equity Fund. As the name suggests, this fund will keep its focus on the top 100 stocks as per the market cap, hence this is primarily a large cap focussed fund.

In this article, we will analyze how good is this IDBI India Top 100 Equity Fund NFO, whether this IDBI India Top 100 Equity Fund offers anything new or unique for the investors and whether the investors should invest in IDBI India Top 100 Equity Fund.

IDBI India Top 100 Equity Fund NFO: Review Analysis & Details

Let's begin with some basic details about IDBI India Top 100 Equity Fund.

What are the NFO dates for IDBI India Top 100 Equity Fund?

Image sourced as screenshot from official idbi mutual fund site
The NFO period for IDBI India Top 100 Equity Fund is from April 25, 2012 to May 09, 2012. After the NFO period, the regular buying, selling and redemption of fund units will start from May 22, 2012.

What is so unique about this IDBI India Top 100 Equity Fund?
If this has to be answered in simple terms, there is nothing unique in this offering. Just another mutual fund which will try to track the performance of the top 100 stocks being traded on NSE. So basically, it is boiling down to being a large cap fund where the fund manager will try to replicate the performance of the "CNX 100 Index" which contains top 100 stocks on NSE. The fund managers will select among those top 100 stocks (but may not be limited to them) and try to generate returns similar to "CNX 100 Index". Obviously the tracking error will come in and after charges the returns will vary for the end investor. So overall, this is another large cap focussed mutual fund by IDBI.
In the past as well, IDBI has come up with many funds as follows:

- IDBI Nifty Index Fund

- IDBI Nifty Junior Index Fund

- IDFC Small Cap Equity Fund

As one can observe, most of the funds from IDFC are market-size specific - either focussing on large caps, mid caps or small cap stock profiles.

What are the other competitor products available in comparison to IDBI India Top 100 Equity Fund?
There are literally hundreds of mutual funds available. Add it them the list of ETF (Exchange Traded Funds) and Index Funds, the no. will shoot even higher. See List of All Mutual Fund and NFO Articles here
However, there can be more similar products offerings from other fund houses as that list is not complete.

What are the risks of investing and trading IDBI India Top 100 Equity Fund?
Basically, any investor who is looking for investing in top 100 market cap stocks of NSE through the mutual fund route can invest in this mutual fund from IDBI. However, the risk is obviously there.
As an investor of thi mutual fund, you will be taking a risk on the performance of this fund which may not necessarily be replicating the top 100 stock index. There is dependency on fund managers stock selection (which is inherent in any mutual fund investment).
Then, the overall stock market risk is always there. What if the stock market collapses during your period of investment in this fund.
These inherent risks are to be taken by the investor.

Final Thoughts about IDBI India Top 100 Equity Fund?
Another large cap focussed fund from IDBI adding to the already available large cap mutual funds.
See List of All Mutual Fund and NFO Articles here

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 5000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in IDBI India Top 100 Equity Fund.

There will be 2 plans for investors to choose from:

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

IDBI India Top 100 Equity Fund Entry Load:
IDBI India Top 100 Equity Fund Exit Load: 1% for exit (repurchase/switch-out/SWP) on or before 1 year from the date of allotment.
NIL beyond 1 year.

Asse Allocation:
Equities and equity related instruments of constituents of the CNX 100 Index - 70% to 100%
Debt and Money market instruments - 0% to 30%

SIP or systematic investment plan? Yes Available.
Monthly SIP Option: Rs. 500 and in multiples of Re. 1/- thereafter, per month, for atleast 12 months or Rs. 1000 and in multiples of Re. 1/- thereafter, per month, for a minimum period of six months.

Quarterly SIP Option: Rs. 1500 and in multiples of Re. 1/- thereafter, per quarter, for a minimum period of four quarters.

The benchmark for IDBI India Top 100 Equity Fund will be CNX 100 Index

Mr. V. Balasubramanian will be the fund manager for IDBI India Top 100 Equity Fund.

Motilal Oswal MOSt Shares Gold ETF NFO: Review Analysis & Details

Details about Motilal Oswal MOSt Shares Gold ETF: Review, Analysis, Details & Investment Opinion.
Another mutual fund house is going to make an entry into the Gold based ETF fund offering. This time it is the Indian brokerage and asset management firm called Motilal Oswal India which is going to launch its mutual fund called the Motilal Oswal MOSt Shares Gold ETF.

In this article, we will analyze how good is this Motilal Oswal MOSt Shares Gold ETF NFO, whether this Motilal Oswal MOSt Shares Gold ETF offers anything new or unique for the investors and whether the investors should invest in Motilal Oswal MOSt Shares Gold ETF.

Motilal Oswal MOSt Shares Gold ETF NFO: Review Analysis & Details

Let's begin with some basic details about Motilal Oswal MOSt Shares Gold ETF.

What are the NFO dates for Motilal Oswal MOSt Shares Gold ETF?

The NFO period for Motilal Oswal MOSt Shares Gold ETF is from 2nd March 2012 and will close on 16th March 2012. After the NFO period, the regular buying, selling and redemption of gold ETF fund units will start.

What is so unique about this Motilal Oswal MOSt Shares Gold ETF?
Motilal Oswal hae launched many ETF's in the past and all of them have come with a unique feature. See the following details to know about their individual offerings:
- Motilal Oswal MOSt Shares M50 ETF

- Motilal Oswal Most Shares NASDAQ-100 Fund

- Motilal Oswal MOSt Shares M100 ETF-Fund

So what is unique about this Motilal Oswal MOSt Shares Gold ETF - this is the one and only Gold ETF which allows investors an option to actually take physical delivery of gold at the time of redemption of the Gold ETF units. That means, I as a investor of Motilal Oswal MOSt Shares Gold ETF purchase the gold ETF units. Say I hold it for few months and now I want to redeem my ETF units. I have 2 options:
1) I can simple sell back my Gold ETF units and get money back at the effective price of my units
2) I can actually ask for physical gold (i.e. the gold bar) instead of taking the money

This is the only Gold ETF in India which is offering this kind of physical gold delivery and this is what sets it apart.

What are the other competitor products available in comparison to Motilal Oswal MOSt Shares Gold ETF?
If not hundred, then nothing less than that are available in terms of Gold ETF's and gold saving funds. Check out the complete list

- All Gold ETF's

- All Gold Saving Funds

What are the risks of investing and trading Motilal Oswal MOSt Shares Gold ETF?
Obviously, you are taking a bet on the gold prices. If the gold prices go down after you invest in this Gold ETF, your investment might suffer a loss. It will not matter whether you have the option of physical gold redemption or money redemption. This risk is borne by the investor.

Another thing is that this Motilal Oswal MOSt Shares Gold ETF requries a minimum investment of Rs. 10000, while other Gold funds and gold saving funds are offering investments for much lower amounts.

Final Thoughts about Motilal Oswal MOSt Shares Gold ETF?
Overall, it is another Gold based ETF. Option of physical gold redemption is good but think about it - why would an investor go for physical gold redemption? Only if he needs the physical gold - say for marriage in the family or similar occassion. And what will he do after getting the physical gold which is in minimum 10 gm gold bar units? He will have to anyways approach the jeweller to convert this gold bar into jewellery.
So overall - option of physical redemtion looks good, but investors need to take a call on its usability as per their own needs.
See List of All Mutual Fund and NFO Articles here

RiddiSiddhi Bullions (RSBL) will be providing the Gold bars for physical redemption, but the redemption will actually happen with T+5 days settlement cycle in case of physical gold redemption - i.e. one needs to wait for 5 days to actually receive the gold bars. Also note that physical delivery is limited to only 22 cities in India as of now, so rest city investors need to keep this in mind. They should check how the physical gold will be made available to them if they reside in other cities.

This ETF will be listed both on NSE and BSE.

During NFO period each unit cost Rs. 10 per unit
Minimum investment Rs 10,000 and in multiples of Re 1 afterwards.

Tax benefit will NOT be available in Motilal Oswal MOSt Shares Gold ETF.

The Motilal Oswal MOSt Shares Gold ETF also claims that it offers discount as compared to gold spot prices. There is no wealth tax for Motilal Oswal MOSt Shares Gold ETF.

MCX IPO Grey Market Premium Price Information & Details

In our earlier post MCX IPO: Review Analysis & Details of Multi Commodity Exchange (MCX) IPO, we had covered the basic details and review analysis of the much awaited MCX IPO - the first such IPO listing in India where a stock exchange is going to list its share for trading in Indian Stock Markets.

In this article, we will cover details of Grey Market Premium for the MCX IPO. Please note that these details are as available from the various news items through print and TV media business news channels and is not a verified or confirmed information. MCX IPO is much awaited IPO by many investors as it is one of the first stock exchanges to list its shares for trading. Usually, exchanges earn their income from the transactional fees, subscription fees, licence fee for index, etc. and considered to be safe. However, no returns are guaranteed - it all depends upon the time and randomness and investors need to keep the risks in mind. Image sourced from official MCX Exchange website
Now, coming back to the Grey Market Premium Prices for the MCX IPO:

Grey Market Premium Prices for MCX IPO

As reported by a leading business news channel, the MCX IPO has once again opened the Grey market Trading in the Indian Stock market business. Although it is not known to be legal, but this business continues. As per the news available, the MCX IPO is currently trading at a premium in the range of Rs. 270 to Rs. 320 per share.
Now this IPO premium is really high as compared to the price band of the MCX Rs. 860 to Rs. 1032. Even at the higher end of the price band of Rs. 1032, the Grey market premium of average Rs. 300 means a 30%.
Market reports say that this grey market premium will increase further as the IPO opens for subscription and listing day approaches.

What does this Grey market price premium for MCX IPO mean?
The grey market involves unofficial buying and selling of shares a few days before the actual listing of the IPO on the stock exchanges. Since this activity starts few days before the actual listing of the shares, the extra premium is considered to be profitable to the traders. However, once the stocks list, the premium gradually or rapidly disappears, as the case may be depending upon the market perception of the stock valuation.

Is the return guaranteed if an upcoming IPO is having a grey market premium like that reported for MCX IPO
NO- nothing is guaranteed. Just because some upcoming IPO is quoted to be trading at a premium in the grey market, it does not mean that it will definitely be profitable to the investors. Remember the fate of Anil Ambani's ADAG group's Reliance Power IPO: What went wrong? - that was also trading at a big premium in grey market, but things went wrong on the listing day itself. Check the above article for more details.

What is the final opinion about investing in MCX IPO?
Irrespective of whatever is going on in the so called grey market, stock exchanges investments in form of buying its listed shares is good in the long run.
As listed in detail in our review of MCX IPO article MCX IPO: Review Analysis & Details of Multi Commodity Exchange (MCX) IPO, this IPO will be a good bet for long term hold. See the above article for more details.

IDBI Dynamic Bond Fund NFO: Review Analysis & Details

Details about IDBI Dynamic Bond Fund
IDBI Mutual Fund house has come out with a Bond Fund and its NFO is currently open. In this article, we will explore this IDBI Dynamic Bond Fund and see whether this Bond fund from IDBI is any useful to investors and which class of investors does this IDBI Dynamic Bond Fund suit.
Let's begin with some basic details of IDBI Dynamic Bond Fund:

What actually is this IDBI Dynamic Bond Fund?
IDBI Dynamic Bond Fund is a fund launched by IDBI mutual fund house and like any other mutual fund this fund will also collect money from investors and invest in certain financial instruments with an aim to generate good returns.
Since this is a Bond fund, the money collected will be invested in Bonds and similar other Debt based and money market instruments. Hence, the returns from this fund will not be that volatile as like those from equity or stock based mutual funds, but this fund claims to be less risky compared to the equity mutual funds.
Traditionally, Indian investors go for stock based mutual fund, but lately debt based mutual funds are also gathering good customer interest hence this fund may find a good interest in the market.
Also, we have observed a good long period of high interest rates where returns from debt instruments have been better than equity markets. So that is what the fund managers of this IDBI Dynamic Bond Fund are trying to capitalize upon.

Being a Bond or Debt fund, are returns guaranteed from this IDBI Dynamic Bond Fund?
No, nothing is guaranteed. No bond fund or debt fund would ever (or can guarantee) any returns or capital protection and same is true for this IDBI Dynamic Bond Fund also.
Investors should not live under the impression that bond funds are risk free or come with any kind of guaranteed returns.

What are the NFO dates for IDBI Dynamic Bond Fund?
The IDBI Dynamic Bond Fund is open from 31 January 2012 to 14 February 2012 for its NFO period

IDBI Dynamic Bond Fund Review Analysis & Details

What will be the benchmark index for tracking returns of IDBI Dynamic Bond Fund?
CRISIL Composite Bond Fund Index will be used for tracking performance of IDBI Dynamic Bond Fund

What are the other investment details of IDBI Dynamic Bond Fund?

Minimum investment in IDBI Dynamic Bond Fund is Rs. 5000 and in multiples of Re. 1 thereafter.

Multiple options available for investments:
Growth Option
Dividend Option - Payout will be quarterly or annual (as per the availability)

Face value will be Rs. 10

Mr. Gautam Kaul will be the fund manager

Systematic Investment Plan (SIP) for IDBI Dynamic Bond Fund?
SIP is available for IDBI Dynamic Bond Fund:
If you go for monthly option for a minimum 12 months, then Rs. 500 minimum per month and multiples of Re. 1 above that.
For 6 months, Rs. 1000 minimum per month and multiples of Re. 1 above that.

For Quarterly Option, Rs 1500 minimum per quarter and multiples of Re. 1 above that, for minimum 4 quarters

What are the entry load and exit load charges for IDBI Dynamic Bond Fund
Entry Load NIL
Exit load NIL

Is there any tax saving or tax benefit available in IDBI Dynamic Bond Fund
No, there will be no tax saving or tax benefit

See List of All Mutual Fund and NFO Articles here

Final Thoughts about IDBI Dynamic Bond Fund
A good option for investors who are willing to look for some exposure to the debt instruments and money market securities. However, please note that the returns are not guaranteed, nor is the capital protected with any guarantee. Bond funds do come with their own set of risks (although they are less volatile compared to equity fund.
IDBI Dynamic Bond Fund

Fidelity Tax Advantage Fund: Save Tax by investing in Fidelity ELSS

This article contains details & information about Fidelity Tax Advantage Fund (Fidelity Tax Advantage Fund ELSS). Also covered is the review, analysis, details and opinion about investing in Fidelity Tax Advantage Fund
Its time the financial year is ending in India and individual tax payers, expecially the salary class, are worried about tax savings. Before the Direct Tax Code or DTC gets implemented about which there are concerns that it might take away the tax savings offered by ELSS, investors might have this last chance for getting tax benefits for investing in an Equity based mutual fund.

What actually is the Fidelity Tax Advantage Fund?
Fidelity Tax Advantage Fund is a mutual fund from the world renowned Fidelity mutual fund house. Like any other mutual fund, this fund too collects money from the common investors and invests it in equity/stocks with an aim to generate returns.
It is categorized as an ELSS or Equity Linked Saving Scheme, which gives investors a tax benefit as well.

Fidelity Tax Advantage Fund Details

What is unique about Fidelity Tax Advantage Fund?
Apart from being a equity based mutual fund, this fund also offers tax savings under the ELSS scheme under section 80(C) of Income tax act i.e. any investments made in this scheme (for the entire cap of 1 Lakh Rs. under section 80(C)) will be exempted from taxes.
See related: Complete List of Qualifying investments under section 80C and Tax Savings details for Section 80C

What are the other details about Fidelity Tax Advantage Fund
The fund has been around since 2006. Since it offers tax savings, it comes with a lock-in period of 3 years i.e. investors investing into this fund for tax saving purpose cannot withdraw their money for 3 years.

Multiple options available for investments:
Growth Option
Dividend Option - Payout, Reinvestment facilities

Minimum purchase amount:Rs. 500 per application.

Mr. Sandeep Kothari is the fund manager.

What is the benchmark index for Fidelity Tax Advantage Fund
Fidelity Tax Advantage Fund tracks the BSE 200 index and is an actively managed fund

Is the SIP facility available in Fidelity Tax Advantage Fund?
Yes, SIP or Systematic investment Plan is available.
For SIP: Rs. 3,000 (minimum single investment of Rs. 500 and in multiples of Rs. 500 thereafter, minimum 6 instalments).

What are the entry load and exit load charges for Fidelity Tax Advantage Fund
Entry Load NIL
Exit load NIL

What are the other competitor products to Fidelity Tax Advantage Fund
Tax Saving Investment Funds:
Lots and lots are availble, here are a few:

- Principal Personal Tax Saver Fund (ELSS),

- SBI Tax Advantage fund

- Reliance Equity Linked Savings Fund and many more

- SBI Magnum Taxgain

If you are looking for tax saving investments on the debt side, then there are these long term infrastructure bonds plus tax saving bond issues by various other government organizations

- IRFC Tax Free Bonds

- NHAI Tax Free Bonds issue

- HUDCO Tax Free Bonds

Then there are several infrastructure bonds issues currently open which will provide you tax savings like
1) IDFC Infrastructure Bonds for Tax Saving

2) L&T Infra Bonds for Tax Saving

3) SREI Infra Bonds for Tax Saving

Investors looking for tax savings have a lot of choice for investments in various financial instruments. One can take a call about which tax saving investment to choose based upon his own capital availability, tax bracket and risk appetite.

HUDCO Tax Free Bonds: Review, Analysis & Calculation for HUDCO Bonds 2012

The Housing and Urban Development Corporation (HUDCO) is expecting to raise more around 4685 Crore Rs. (including over-subscription option) through tax saving bond issue
Yesterday we covered about a similar issue from Indian Railways Finance Corp Bonds: IRFC Tax Free Bonds, and this tax free bonds issue from HUDCO is exactly similar in nature - offering long term investment with tax benefits.
Let's see some basic details of these HUDCO Tax Saving Bonds first:

Calculations for effective returns from HUDCO Tax Saving Bonds

What is the actual instrument being offered in the name of HUDCO Bonds for Tax Savings (Image courtesy: HUDCO official site)
The issue offered by HUDCO are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

Also see Related NHAI Tax Free Bonds issue and
currently open similar offering from Indian Railways : IRFC Tax Free Bonds

What is the business and function of HUDCO?
HUDCO or Housing and Urban Development Corporation is the finacial arm under Government of India. Its main function is to provide and finance the required capital to development housing projects, financing housing schemes, community facilities and related infrastructure services.

HUDCO Tax Free Bonds 2012

What are the opening and closing dates for HUDCO Bonds for Tax Savings
The HUDCO Tax Saving Bond issue opens on January 27, 2012, and closes on February 6, 2012.

What are the tax benefits avaialble for investors in the HUDCO Bonds for Tax Savings
The income earned as interest from the HUDCO tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of HUDCO Bonds for Tax Savings
The issue constitutes of Rs. 2000 Crores with an option of extending it to another 2,685 Crores taking the total to 4,685 Crores in case of over-subscription.

Are the HUDCO Bonds for Tax Savings available only in demat form?
Both demat and physical paper form applications can be made for HUDCO tax saving bonds - however, trading of these bonds will happen only in demat forms. Hence, physical form will be better for investors who are looking only for long term investment and hold rather than trading.

What are the investment details about HUDCO Bonds for Tax Savings?
Each HUDCO Bond will cost Rs. 1,000 each (face value) and one needs to apply for atleast 10 bonds meaning the minimum application amount comes to Rs. 10,000. Above that, the investors need to apply in multiples of 5 bonds.
The bonds come in two series (I and II) -
Interest rates offered on annual basis are as follows:
- 8.10% for Tranche-I Series 1 Bonds and
- 8.20% for Tranche-I Series 2 Bonds

However, if one applies for amount more than 5 Lakhs, he can earn another extra 0.12% p.a. and 0.15% p.a. on series 1 and series 2 respectively.
The interest rates appear to be better than those offered by similar issue from IRFC (See IRFC Tax Free Bonds)

What are the credit ratings assigned to HUDCO Bonds for Tax Savings
CARE has assigned "CARE AA+" by CARE to tranche 1 bond series and "FITCH AA+ (ind)" by FITCH.
All these indicate good stable outlook.

Where will the HUDCO Bonds for Tax Savings be listed?
The HUDCO bonds will be listed both on BSE and NSE.

What are the effective returns available on HUDCO Bonds for Tax Savings considering the tax free interest?
HUDCO bonds are offering an effective post-tax returns of about 12% - please note that this is for individuals in the highest 30% tax bracket.

What are the other options available for tax savings to investors other than HUDCO Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) SREI Infra Bonds for Tax Saving

How can one apply for HUDCO Tax saving bonds?
Interested investors can apply through the BRLM sites and possibly also through the trading portals.

How will the capital collected by HUDCO Tax saving bonds be used by HUDCO?
As per the prospectus, the capital raised will be used for further business activity expansion and financing requirements.

Final Thoughts about HUDCO Bonds for Tax Savings?
HUDCO is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Investors looking for tax savings options with shorter maturity can apply for these HUDCO bonds.
Enam Securities Private Limited and SBI Capital Markets Ltd are the Book Running Lead Managers. SBICAP Trustee Company is the Trustee

Indian Railway Tax Free Bonds: Review, Analysis & Calculation for IRFC Bonds 2012

The Indian Railways Finance Corporation is expecting to raise more around 6300 Crore Rs. through tax saving bond issue and looks like it is hitting the bulls-eye. The first day of opening the issue of IRFC bonds has given a whooping four times subscription.
High on the heels of other government infrastructure companies issuing Long term infrastructure bonds offering tax benefits to investors, the Indian Railways Finance Corporation (IRFC) has come out with its own issue of Tax Saving Bonds to tap into the benefits of long term capital raising thereby offering investors another option for tax savings.
Let's see some basic details of these IRFC Tax Saving Bonds first:

Calculations for effective returns from IRFC Tax Saving Bonds

What is the actual instrument being offered in the name of IRFC Bonds for Tax Savings
The issue offered by IRFC are Tax Free Secured Redeemable Non Convertible Bonds in the nature of Debentures but offering tax benefits under section
10(15) (iv) (h) of the Income Tax Act, 1961.

See Related NHAI Tax Free Bonds issue

What is the business and function of IRFC?
IRFC or Indian Railway Finance Corporation is the finacial arm of Indian Railways under the minitry of Railways, Government of India. Its main function is to provide and finance the require capital to development projects in Railways.

IRFC Tax Free Bonds 2012

What are the opening and closing dates for IRFC Bonds for Tax Savings
The IRFC Tax Saving Bond issue opens on January 27, 2012, and closes on February 10, 2012.

What are the tax benefits avaialble for investors in the IRFC Bonds for Tax Savings
The income earned as interest from the IRFC tax saving bonds is fully exempted from income tax.
No TDS will be deducted by the issuer while paying the interest.
There is no Wealth Tax levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957

What is the issue size of IRFC Bonds for Tax Savings
The issue constitutes of Rs. 3000 Crores with an option of extending it to another 3,300 Crores taking the total to 6,300 Crores in case of over-subscription.

Are the IRFC Bonds for Tax Savings available only in demat form?
We currently do not have information about the physical form for IRFC bonds, but demat forms are surely available.

What are the credit ratings assigned to IRFC Bonds for Tax Savings
CRISIL has awarded "CRISIL AAA/Stable" ,CARE has assigned "CARE AAA" and "[ICRA] AAA" by ICRA. These are similar to the rating offered to the NHAI Tax Free Bonds issue
All these indicate good stable outlook.

Where will the IRFC Bonds for Tax Savings be listed?
The IRFC bonds will be listed both on BSE and NSE.

What are the effective returns available on IRFC Bonds for Tax Savings considering the tax free interest?
IRFC bonds are offering an effective post-tax returns of about 12% - please note that this is for individuals in the highest 30% tax bracket.

What are the other options available for tax savings to investors other than IRFC Bonds for Tax Savings
The investors can invest in Long Term Infrastructure bonds which are currently open:
1) IDFC Infrastructure Bonds for Tax Saving
2) L&T Infra Bonds for Tax Saving
3) SREI Infra Bonds for Tax Saving

What are the investment details about IRFC Bonds for Tax Savings?
Each IRFC Bond will cost Rs. 1,000 each (face value) and one needs to apply for atleast 10 bonds meaning the minimum application amount comes to Rs. 10,000. Above that, the investors need to apply in multiples of 5 bonds.
The bonds come in two series (I and II) -
For sereis I coupon rate of 8.00% p.a for 10 years (Series I) and 8.10% p.a for 15 years (Series II)

However, if one applies for amount more than 5 Lakhs, he can earn another extra 0.15% p.a. and 0.20% p.a. on series 1 and series 2 respectively.

How can one apply for IRFC Tax saving bonds?
Interested investors can apply through the BRLM sites and possibly also through the trading portals.

How will the capital collected by IRFC Tax saving bonds be used by IRFC?
The money collected will be used for taking up more rolling stock and capacity increase funding in Indian Railways

Final Thoughts about IRFC Bonds for Tax Savings?
IRFC is backed by the government. Hence, the the stability and credit of these bonds can be considered to be stable.
Investors looking for tax savings options with shorter maturity can apply for these IRFC bonds.
A K Capital Services Ltd, SBI Capital Markets Ltd, and ICICI Securities Ltd are the Book Running Lead Managers. Indian Bank is the Trustee.