Bonds

Bonds

Bonds FD

Bonds are debt securities that are issued by governments, municipalities, and corporations to raise capital. When you invest in a bond, you are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount at maturity. There are several types of bonds, including

Government Bonds

These bonds are issued by national governments to finance their operations and projects. They are generally considered low-risk investments because governments have the ability to tax or print money to repay their debts

RBI Floating Rate Savings Bonds 2020 ( Taxable)

Capital Gain Bonds

Capital gain bonds, also known as tax-saving bonds, are financial instruments issued by government entities in some countries, such as India, to provide individuals with a tax-saving investment option. These bonds are typically issued for a fixed term and offer tax benefits on the capital gains generated from the sale of other assets.

  • NHAI ( National Highway Authority Of India)
  • REC ( Rural Electrification Corporation Ltd)
  • PFC (Power Finance Corporation Ltd)

Non-convertible debentures (NCDs) are fixed-income instruments issued by corporations or financial institutions to raise funds. They have a fixed interest rate, a specific maturity period, and cannot be converted into equity shares. NCDs can be secured or unsecured, are tradable on stock exchanges, and are assigned credit ratings. Investors receive regular interest payments and the principal amount at maturity.

Corporate fixed deposits (FDs) are fixed deposit schemes offered by companies to investors. They are similar to traditional bank fixed deposits but are issued by corporations instead of banks. Corporate FDs provide investors with an opportunity to earn a fixed rate of interest on their investment over a predetermined period.

Types of Corporate FD's :

  • Bajaj Finance Ltd
  • Mahindra & Mahindra Finance Ltd
  • PNB Housing Finance Ltd
  • HDFC Ltd
  • Shriram Finance Ltd
  • ICICI Home Finance
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