What is the primary appeal of Tax-Free Bonds in India?

"High returns with tax-deductible interest" "Tax exemptions on interest earned" "Short-term investment opportunities" "Guaranteed high-interest rates"

Which entities typically issue Tax-Free Bonds in India?

"Private companies" "Foreign investors" "Government-owned or government-backed organizations" "Non-profit organizations"

What is a characteristic feature of the interest rate associated with Tax-Free Bonds?

"Variable and subject to market fluctuations" "Fixed and unaffected by market changes" "Determined by individual investors" "Adjusted based on inflation rates"

What is the typical maturity period for Tax-Free Bonds?

"1-5 years" "5-10 years" "10-20 years" "20-30 years"

Why are Tax-Free Bonds considered a suitable investment for portfolio diversification?

"They offer high-risk, high-reward opportunities" "They provide a stable, long-term investment option" "They are directly linked to stock market performance" "They guarantee returns exceeding inflation rates"

What is a key requirement for investing in Tax-Free Bonds?

"A savings bank account" "A high credit score" "A Demat account" "A minimum investment of INR 10,000"

How frequently is the interest on Tax-Free Bonds typically paid?

"Monthly" "Quarterly" "Semi-annually or annually" "Upon bond maturity"

What is a crucial factor to consider before investing in Tax-Free Bonds?

"Investor's age" "Investor's occupation" "Investor's risk tolerance" "Investor's geographical location"

Who would generally benefit most from investing in Tax-Free Bonds?

"Individuals in low tax brackets seeking short-term gains" "Individuals in high tax brackets looking for long-term, stable returns" "Individuals seeking high-risk, high-reward investments" "Individuals with limited investment experience"

What is a significant risk associated with Tax-Free Bonds?

"High volatility due to market fluctuations" "Potential for default by issuing entities" "Limited liquidity and difficulty in trading" "Exposure to inflation eroding returns"