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AIDA Model

Awareness

 Financial Inclusion
 Planning Commission
 Compounding
 Table / Charts
 PAN Cards / UIDAI
 E – Choupal
 Benefits – Education because of new schools opening

Interest

 Benefits – Return
 Savings

Desire

 Group Investment

Action


7 P’s

Product

 REC Infrastructure Bond with different maturity

Price

 2000 per bond

Place

 Through Local Bank


 Virtual (Internet)

Promotion

 Tax Saving
 Direct Selling
 Development of Infrastructure in Rural areas (Electrification)
 Warehouse development as it is included under Infrastructure
 AIDA Model
 Sarpanch Investment – 10% of the revenue to be invested on behalf of the entire village
 Open Demat Account and PAN Cards
 Opinion Leaders

Physical Evidence

 Rural Areas

Process

 Learn, Purchase, Invest and Returns

People

 Rich Villagers – Farmers, Merchants


 Sarpanch of the villages
 Sarpanch Investment
Benefits of the Bonds

 Tenure: 10 years
 Interest Rate: 7.5% or 8.0%
 NRI'S cannot invest in these bonds
 These bonds have no limit on investment which means that the investor can invest as much as
he feels on such bonds but the amount eligible for tax deduction is limited to a maximum of Rs.
20,000.
 All tax saving infrastructure bonds have a tenure of 10 years
 Generally the lock in period is 5 years
 Any individual is eligible to purchase these bonds but he or she must have a demat account and
a permanent account number (PAN)
 In case investors want to exit after the 5 year lock in period, they can sell the bond either
through the stock market or they can ask the issuer to buy it back.
 These bonds can also be pledged for loans after the completion of the lock in period.

Again these bonds have been introduced in order to help individuals save tax. In order to understand
the advantages and disadvantages of investing in infrastructure bonds four parameters need to be
kept in mind.

 Actual tax-saving
 Return on investment
 Opportunity cost ( Whether the investment is really beneficial)
 Effect of Inflation on the returns on investment

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