A bond is a debt security and a fixed interest financial instrument. This investment represents a loan offered to a third party by the investor. In exchange of the principal (investment amount), the borrower offers the investor (lender) a predetermined fixed rate of interest (bond coupon) until maturity of the bond. Upon maturity, the borrower returns the principal to the investor.
Bonds have 2 main categories: Government bonds (issued by RBI) and Corporate Bonds.
Bonds are one of the least risky investments for an investor as they potentially offer fixed returns and regular cash in-flow. An investor can invest in bonds directly or via bond funds.
Making the low risk correct choice which satisfies your investment purpose and financial goals in the required timeline is always a tough task.
In order to choose which bond investment is suitable for your needs, get in touch with us today!