About Bonds

A bond is a fixed income instrument in which investor loans money to an entity (Corporate or Government) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by Corporate or Government to raise money and finance a variety of projects or activities.

It is a market meant for trading (i.e. buying or selling) fixed income instruments. Fixed income instruments could be securities issued by Central and State Governments, Municipal Corporations, Govt. Bodies or by Private entities like Financial institutions, Banks, Corporate, etc.

 

Why invest in Bonds?

·  Regular fixed income

·  Higher interest rate

·  No TDS on GSec, SDL, SGS

·  Portfolio diversification

·  Tradable publicly