Bhavishya Nirman Bonds

An introduction to the Bhavishya Nirman Bonds issued by NABARD

Bhavishya Nirman Bonds are issued by the National Bank for Agriculture and Rural Development (NABARD). These bonds fall into

the category of long term, deep discount bonds. They are issued for 10 years, with zero interest rate. These bonds are issued

at a discount to the face value (Rs. 20,000), and are redeemed at their face value on maturity.

Since the Bhavishya Nirman Bonds are issued by NABARD, they are virtually risk free. Therefore, people looking for a long term, fixed interest rate, risk free option for investment should opt for these bonds.

Features

Are available for investment only during a fixed period each year
Have obtained highest safety rating from CARE and CRISIL
To be listed on BSE
Can be traded only in the dematerialized (demat) form
Income to be treated as Capital Gains in the year of maturity
No TDS
Can be bought in the name of minors
Minimum investment for trading: Rs. 4.8 Lakhs at market price

Features of Feb 2007 issue

Tenure: 10 years
Issue Price: Rs. 9,750
Face Value: Rs. 20,000
Implied Rate of Return (Annualized): 7.4%

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