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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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.
Steady returns, guaranteed principal!
Explore each bond type to find the best fit for your financial strategy
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.
Bonds issued by the Reserve Bank of India, offering a fixed rate of interest with a tenure of 6 years.
Long-term securities issued by the central or state governments. These include bonds with maturities ranging from 5 to 30 years.
Debt instruments issued by state governments to meet their financial requirements. SDLs have similar characteristics to government securities.
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.
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.