Posts

Showing posts from April, 2022

Where should you invest- IPO or NCD IPO?

Image
Companies have several avenues through which they can raise funds. Some primary ways are initial public offering (IPO) and non-convertible debentures (NCD)- IPO.  What is an IPO? A company announces an IPO when it decides to go public and raise funds through the sale of shares and securities to the public for the first time. In other words, the IPO process of an unlisted company going public and getting listed on stock exchanges. This initial process happens in the primary market. Following this, the company takes the status of a publicly-traded company with shares available for trading in the open market. Similarly, fixed income instruments like NCDs (non-corporate deposits), bonds, and others also have an IPO. What is an NCD IPO ? An NCD is a fixed-income instrument used by highly rated companies to raise funds from the public for a fixed tenure. It involves an interest rate and the return of the principal invested on the NCD’s maturity. It is called non-convertible as NCDs cannot

Difference between tax-free bonds and tax-saving bonds

Image
  Introduction Taxes are inevitable, but that does not mean individuals cannot plan for them. Whether individuals are business owners, freelancers, or employees, the last thing they want is to pay too much tax and deal with hefty tax returns. Income tax planning reduces income tax liability by claiming the best tax deductions and credits available. To minimise taxes, it is essential to have a good grasp of the various tax-saving and tax offsetting opportunities available. Individuals can use bonds as one of the ways to save taxes while they invest. Income tax planning reduces income tax liability by claiming the best tax deductions and credits available. To minimise taxes, it is essential to have a good grasp of the various tax-saving and tax offsetting opportunities available.  Individuals can use bonds as one of the ways to save taxes while they invest.  What are tax-free bonds and tax-saving bonds?  Tax-free bonds India are a type of government security that provides coupon a