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SREI Infrastructure Bond

Discussion in 'Mutual Funds' started by saptarshi_sachin, Sep 2, 2013.

  1. saptarshi_sachin

    saptarshi_sachin Responder

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    Shabbir & others,

    Seeking your advice on a bond - SREI Infrastructure Bond issued by SREI Infrastructure Finance Limited.
    The bond (I think it is NCD - do not have much idea about bonds in general) promises these returns:
    1. Minimum Application: Rs. 10000/-
    2. Price per Bond: Rs. 1000/-
    3. Rate of Interest: 11.50% for 3 yrs, 11.75% for 5 yrs and
    double in 6 yrs and 3 months

    The issue will close on Sept 17. Please advice me if one can go for it as these seem to be guaranteed returns (it is not linked with equity related instruments). Are there any risks involved ? Please share your view.
     
    saptarshi_sachin, Sep 2, 2013
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  2. shabbir

    shabbir Administrator Staff Member

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    Bond are more like an FDs but I would say no to bonds as of now because it is better to be doing FD's then bond because you have the money liquid and can break at any time.

    Yes FD's have less return than bonds though
     
    shabbir, Sep 2, 2013
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