Good investment idea to retired people in Bond /debenture market:


Nowadays, there is a problem for retired people about interest rate reduction on month to month basis. Now banks are giving at the most 9.5% per annum which will be reduced to 9% soon. In order to preserve interest more than 11% and in good company, the following one is suggested for our followers and others who are yet to become our followers in this site.

Shriram Transport Finance – Good company having AAA rating.

Secured, Non-Convertible Debentures of Shriram Transport Finance Co. Ltd of Rs.1000 each. It is listed in Bombay stock exchange and traded in secondary stock market. The BSE code for this is 934811. The annual coupon (interest rate) is 11.6%. Interest paid annually. It will mature in 27th June 2016. Now it is available in demat form with all stock brokers. So this safest debenture can be purchased by any one who wants high interest. Also No TDS in it but interest is included in the income of individual. So why wait? Contact your stock brokers and purchase the same from stock brokers. In the same way, IIHFL with a coupon rate of 12% available but matures on April 2020 and the debenture of Rs.1000 trades at Rs. 1035 now. But I prefer the above one.

C.R. Venkata Ramani

(AICWA)

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8 thoughts on “Good investment idea to retired people in Bond /debenture market:

  1. Shriram Transport Finance Company Ltd has informed BSE that March 13, 2015 has been fixed as the Record Date for the purpose of Payment of Interest for NCD.Due to this the price of the bond has gone down to Rs.1004 today. Those invested will get interest soon in their bank account.

  2. One of the reader raised the question why the purchase amount which is shown as Rs.1105 in the article but in market it was Rs.1107, he his right. Since the debentures are traded online, on any time, it can be encashed with cum interest as per the prevailing market rate and it fluctuates based on interest rates prevailing in india. If RBI reduces interest rate further, then the face value of this bond will increase and thus capital gain will be there. I think I have replied for the query raised.

  3. Thanks for good investment tip. In my Reliance Money online trading account it shows Last Traded Rate = 1107. So my question here is why it’s differ than your amount 1105?

  4. The above mentioned non-convertible secured debenture of shriram transport is available in secondary market at Rs.1105 which includes interest accumulated for the current year and payment of interest will bemade in june15. Since this is annual payment, interest accumulated also is included in the debenture traded amount in BSE.

    1. Thanks for good investment tip. In my Reliance Money online trading account it shows Last Traded Rate = 1107. So my question here is why it’s differ than your amount 1105?

    2. Now this bond closes for record date on 21st March for paying interest. Hence from next day onwards, it will start its journey from Rs.1000/ Those on record date will get interest in their bank account after 10 to 15 days

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