How Investing in IRFC Share can benefit you

Indian Railway Finance Corporation (IRFC) emerged as a top gainer among the railway stock this year. IRFC is marketing borrowing of Indian railway. Its main aim is to finance the assets and project assets of the Indian railway. It was founded in 1986 with the aim to finance the acquisition of assets to be leased in Indian railways. The share price keeps changing for any stock. IRFC share price is 75.60 as of October ’23.

IRFC is an asset provider to the Indian railway and has better prospects in the future because the railway has the largest network in Asia. There are several benefits of investing in an Indian railway finance corporation.

1. Government back: Indian Railway Finance Corporation (IRFC) is considered to be a safe investment option because IRFC is a wholly subsidiary government corporation. One of the best advantages of investing in IRFC is that it has back from the government and the support for the government. This provides a sense of security among the investors. An investor would be more likely to invest where he/she can earn a return with the security of their invested money.
2. Constant dividend income: IRFC has a record of constantly giving dividends to their shareholders. For an investor who wants a stable dividend income, this is the best option for them to invest as it provides a reliable source of income. The main source of income of the company is from the interest earned on loans given to Indian railways.
3. Growth: Investing in IRFC automatically means investing in Indian railways. Indian railway is expanding continuously as the years pass. As the population rises, the Indian railway expands and it means IRFC will be also growing. IRFC plays an important role in financing, developing, and providing assets to the Indian railway.
4. Tax benefits: Investment in IRFC also offers tax benefits sometimes. The government provides tax benefits to the investors of IRFC who invest in infrastructure growth and reduce the investor’s tax liability.
5. Diversification: Diversifying a portfolio is an important part of risk management. If an investor’s portfolio is diversified in terms of stock, assets, and shares can reduce the overall risk. By investing in IRFC, you are diversifying your portfolio and reducing the rate of risk involved in other assets.

Conclusion

Investing in IFRC has many other benefits also including government back, diversification, tax benefits, growth, and constant dividend income. However, it is essential to do proper research and consult ant financial advisor or brokerage like 5paisa before coming to any financial decision. IRFC is the best option for those investor who don’t want to bear more risk and want a stable income. With railways looking to expand and reach more people, infrastructure requirements will increase and that means more revenue to IRFC. It is a more profitable option for investors.