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This is a listed and N/A bond
Tier 1 and Tier 2 Bonds are issued by Banks and some NBFCs. These bonds are perceived to be risky investments, irrespective of their credit ratings.
Tier 1 Bonds are higher in risk than Tier 2 Bonds. Hence they pay higher coupons.
In extreme cases, if a Bank reaches a point of non-viability (PONV), RBI can instruct to write off the Tier 1 and Tier 2 Bank Bond papers in full.
In such extreme cases, bond holders will not receive any outstanding interest and principal investment money back.
This a 54EC bond
These types of bonds can be used to get 100% tax exemptions on Capital Gains made on selling of Land or any other real estate. Capital gain made from sale proceeds of any other asset classes such as gold, equity etc are not covered under these bonds.
This is an Unlisted & bond
The selected bond is a unlisted bond. Coupon payments will be done post 10% TDS deduction. TDS can be claimed during filing of Taxes.
Tier 1 & Tier 2 Bonds are issued by banks and some NBFCs. These bonds are perceived to be risky investments, irrespective of their credit ratings. Tier I Bonds are higher in risk than Tier II Bonds. Hence they pay higher coupons. In extreme cases, if a Bank reaches a point of non-viability (PONV), RBI can instruct to write off the Tier 1 and Tier 2 Bank Bond papers in full. In such extreme cases, bond holders will not receive any outstanding interest and principal investment money back.
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Select your risk profile suiting your investment requirement
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Moderate
A moderate investor typically strives to strike a balance between returns and risk. Such individuals seek higher returns than conservative investors, but only at a level of risk that they find acceptable. Moderate risk-takers may also choose to invest in AAA-rated private or lower-rated papers.
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