Bonds

Fixed Income Products

Investment Bonds are debt instruments in which the authorized issuer owes the bond holders a debt. Depending on the terms of the type of bonds, the authorized issuer is obliged to pay interest and/or repay the principal at a later date upon maturity. In simpler terms, a bond is a formal contract to repay borrowed money with an interest at fixed intervals. Investment bonds are a way to raise money. When you purchase any type of bond (government, convertible, callable, etc.), you are lending money to the issuer which may be a corporation, the government, a federal agency or any other entity. In return, the issuer promises to pay a specified rate of interest during the life of the bond. The issuer also repays the face value of the bond when upon maturity of the term.

Types of Bonds

ZERO-COUPON BONDS

These investment bonds are issued at a discount, but redeemed at the principal amount.

G-SEC BONDS

These are issued by the government and are one of the safest types of bonds to invest in.

CORPORATE BONDS

These types of bonds are simple bonds, wherein a company borrows and pays interest at regular intervals.

INFLATION-LINKED BONDS

In these types of bonds, principal amount and interest payments are indexed to inflation.

CONVERTIBLE BONDS

The bond holder has the option to convert these types of bond into equity on pre-specified terms.

SOVEREIGN GOLD BONDS

Sovereign Gold Bonds are the safest way to buy digital Gold, as they are issued by Govt. of India

RBI BONDS

Government of India has announced to launch Floating Rate Savings Bonds, 2020 (Taxable) scheme commencing from July 01, 2020 to enable Resident Indians/HUF to invest in a taxable bond, without any monetary ceiling.