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Avanse provides education loans to students pursuing higher studies in India and abroad, and to educational institutes in India. There is expected support from Dewan group which holds 49% stake in Avanse. The company has a limited track record in operations as it is a relatively small player in the PSU dominated domestic education loan segment.

This fund is suitable for investors looking for high return with calculated risk having goals up to two years. This is an attractive option for individuals in higher tax slabs.

The facts and figures as on 31st July 2022 are presented as follows, the current yield is 9.3% p.a. with the issue date being 3rd August 2022 of issue size Rs 100 crore. The maturity date is 25th June 2024. The minimum investment required is Rs 10 lakhs.

Underlying Reference Index: 6.54% G Sec 2032

The taxability aspect is also important to be covered. If sold within a year then taxes would be applicable as per slab rates. When sold after holding for a year or more the flat 10% tax rate would be applicable.

Principal Protected Market Linked Debenture – A+ Rating by CARE Ratings Limited