Investment Strategies: IDFC Infrastructure Bonds — A Simple Way To Decide Whether To Invest Or Not

Here’s what I suggest. Ignore all those complicated analysis (an example) of yields and returns and comparisons with other fixed-return financial products. Buy these bonds if and only if:

  • Your objective is to lower your income tax, and

  • You fall in one of the highlighted cells below.


In such a case, opt for the Series – 4 option. Else, don’t bother. Put your money to better use — get started on that emergency fund or make an extra payment against your loan’s principal.

Contrarian to what everyone else’s saying?

Note: Published this post ahead of its schedule given the issue closing date.

21 thoughts on “Investment Strategies: IDFC Infrastructure Bonds — A Simple Way To Decide Whether To Invest Or Not

  1. @Anoop:

    A Demat account is mandatory for investing in the IDFC Infrastructure Bonds since these bonds will ultimately be listed on the stock exchanges. So, without that Demat account you won’t be able to invest in these bonds.

    I read that the issue closing date has been pushed to October 22, 2010. Do you think you’ll be able to open a Demat account in this time?

  2. Hi..

    Now a Demat Account is NOT MANDATORY for investing in the IDFC Infrastructure Bonds..If Want to invest this bonds then you should submit following documents :-

    (1 ). Photo Copy Of PAN Card
    (2). Photo copy Of Address Proof
    (3). One ” CANCEL” Cheque For ECS Payment..

    Issue Closing dtae has been pushed to 22/10/2010…

    Keep it up..

    Nikhil Shah

  3. @ Nikhil
    Thanks for posting this information as it will be very much helpful for a person like me who wants to invest in Infra bonds without demat account.
    Keep investing fast now

  4. Hi Vinaya,
    You say that series 4 is better. But, the returns on series 4 are less than that on series 2.
    Could you explain?
    Another thing is you can invest through too. I’m one of the investors for . It’s one of the best ways to invest in mutual funds/bonds/fixed deposits through online as it does not charge any brokerage rate.

    I think you can invest through Bajaj Capital too.


  5. @Anil:

    I recommend Series 4 primarily because it has a buyback option. Though the bonds will be listed on the NSE and BSE, given the status of the retail bond market today, I’m not sure if these bonds can be readily sold upon listing. The buyback clause gives you an additional degree of financial flexibility.

  6. @Anonymous:

    Simple. Open a Demat account. Submit the physical certificates for conversion to electronic format. You can do this at any time — no need to wait for the bonds to get listed.

  7. Opening of D-Mat account
    Investment in Infrastructure Bonds
    Returns from Infrastructure Bonds
    Exit from Infrastructure Bonds
    Benefits of Infrastructure bonds
    Pl elaborate


    Mutual Fund | Systematic Investment Plan | Infrastructure Bond | 54EC Capital Gain Bond | Tax Free Bond | Company Fixed Deposit | Mediclaim | Income Tax Return Filing

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