Investments in Fixed Income are investments in debt securities that provide a stable and regular higher income than traditional fixed income investments like Bank Fixed Deposits and Corporate FDs. Investing in diversified fixed income securities can enable efficient portfolio diversification and at the same time mitigate portfolio risk to achieve investment goals
Offset your investments in MFs, Stocks or Real Estate. Bonds are less volatile and less risky than most assets and offer more stable returns. For example when stocks fall, bond prices usually rise.
Bonds offer a predictable income stream by paying interest at regular frequency like monthly, quarterly or annually. Use the regular income to manage ongoing expenses
Interest rates on corporate bonds are higher that bank FD rates. They are also tradable on exchange thereby providing liquidity without exit penalty unlike FDs.
For those in high tax bracket and investors seeking to optimize taxes may want to consider tax-free bonds issued by highly rated government-owned issuers.
Minimum investment amount ranges between Rs. 10,000 to Rs. 10,00,000 depending on product type and underlying bonds
Repayment of principal of the loan at the end of tenure, along with Interest paid periodically or at the end of tenure
Perpetual bond are bonds that have no fixed maturity date. Mostly these bonds are issued with a certain call date. Yield on the perpetual bonds are calculated based on the earliest call date.
Coupon rate is the periodic interest paid by the bond issuer to the bond holder for fixed ...
Instruments with AAA rating are considered to have the highest degree of safety with respect to timely servicing of financial obligations. This type of instruments carries lowest credit risk.
Instruments with AA rating are considered to have high degree of safety with respect to timely servicing of financial obligations. This type of instruments carries very low credit risk.
Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. This type of instruments carries low credit risk.
Instruments with BBB rating are considered to have moderate degree of safety with respect timely servicing of financial obligations. This type of instruments carries moderate credit risk.
Instruments with BB rating are considered to have moderate risk of default with respect to servicing of financial obligations.
Instruments with B rating are considered to have high risk of default with respect to timely servicing of financial obligations.
Instruments with C rating are considered to have very high risk of default with respect to timely servicing of financial obligations.