Mumbai: High net-worth investors (HNIs) continue to chase listed tax-free bonds because of the fall in returns in other safe debt products. Since the interest is tax-free, pre-tax effective returns will also be high for them. But this rush is pushing up the prices of tax-free bonds and bringing down their yield to maturity (YTM). For example, YTM on most of these bonds are only around 4.5 per cent now.Investors should, however, consider capital
