Disadvantages of Infrastructure Bonds

  

• Infrastructure Bonds do not offer any protection against high inflation since the rate of interest they offer is pre-determined.
• Against the pledging of the frastructure Bonds with a bank, one can borrow money from banks. The amount depends on the market value of the bond and the credit quality of the instrument.
• Moreover, it should be noted that although Infrastructure Bonds are considered to be safe, there is no assurance of getting the full investment back.
• Long Lock In period
• Lack of liquidity though they are listed on BSE and NSE
• Investor at low end of tax bracket may not benefit much

 

Application form for Applying for Tax Saving Long Term Infrastructure Bond  

Current open Long Term Infra Bond Application form

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