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Bonds

Bonds are fixed income instruments (debt instruments) issued by government or corporate institutions to raise capital as a loan. They are often categorized based on tax status, credit quality, issuer type, maturity, and whether they are secured or unsecured.

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Bonds Background

Basics of Bond

You can invest in fixed income instruments issued by various financial institutions, banks, corporations, state and municipal corporations, or the central government, with the promise of getting your principal back along with regular interest payments.

These bonds also trade in the secondary market, where you can buy and sell them even before maturity. Their prices may be impacted by interest rate movements; as interest rates rise, bond prices fall, and vice versa. However, if you hold your bond until maturity, the principal along with the promised interest will be paid in full.

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Steady returns, guaranteed principal!

Types of Bonds

Explore each bond type to find the best fit for your financial strategy

Treasury Bills

Treasury Bills

Short-term government securities with maturities of less than a year. They are issued at a discount to face value and do not pay periodic interest.

Benefits:

  • Risk-free investment backed by the government
  • Highly liquid
  • Sold at a discount, mature at face value
RBI Bonds

RBI Bonds

Bonds issued by the Reserve Bank of India, offering a fixed rate of interest with a tenure of 6 years.

Benefits:

  • Safe and secure investment
  • Fixed interest rate
  • Suitable for long-term investment
Government Securites

Government Securites

Long-term securities issued by the central or state governments. These include bonds with maturities ranging from 5 to 30 years.

Benefits:

  • Risk-free returns
  • Periodic interest payments
  • Suitable for long-term investment
State Development Tools

State Development Tools

Debt instruments issued by state governments to meet their financial requirements. SDLs have similar characteristics to government securities.

Benefits:

  • Backed by state government
  • Regular interest payments
  • Suitable for long-term investments

How to Get Started?

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01

Define Your Investment Goals

Decide whether you want regular income, capital preservation, or diversification. Assess your risk appetite and investment horizon.

02

Choose the Right Bonds

Select from government, corporate, tax-free, or RBI bonds based on your financial needs and risk tolerance. Check bond ratings and yields before investing.

03

Open an Account & Invest

For listed bonds, open a Demat and trading account. You can also invest via RBI Retail Direct, bond platforms, or offline methods.

04

Monitor & Optimize

Track interest payouts, reinvestment options, and market conditions to maximize returns and manage risk effectively.

Frequently asked questions

What are bonds, and how do they work?

What types of bonds can I invest in?

Are bonds risk-free investments?

How are bond returns taxed?

How do bonds compare with fixed deposits?

Ready to Invest?

Connect with us and secure your investment in corporate bonds!

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