Bonds
Fixed income securities offered by government organizations and corporate houses.
Bonds are fixed income securities offered by government organizations, public sector undertakings, companies, and institutions wanting to raise a loan from the public. Like fixed deposits, bonds offer you fixed returns as per the rate of interest mentioned in the document, but normally bonds offer better interest rates.
You are giving a loan to the entity which uses the funds for their activities. In exchange, you will get regular interest during the tenure of your bond, and in the end, you get your initial loan back. Bonds are one of the safest investments in India as they are issued by government and responsible bodies.
Fixed vs Floating Interest
Unlike fixed deposits, bonds can have fixed interest or floating interest rates.
- Fixed Interest remains the same throughout the tenure.
- Floating Interest changes typically every 6 months (e.g., RBI bonds based on repo rate).
Liquidity & Demat
Your return is fixed if you hold the bond till maturity. If you sell before maturity, the price depends on market conditions.
- Maturities are normally 3, 5, and 7 years.
- You need a demat account to invest in bonds.
Invest in Government Bonds
Contact us to open a Demat account and start investing in high-yield, secure government and corporate bonds.
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