Alternate / Bond Investments

Bonds: Easy, Accessible & Smart Returns

What are bonds?

A bond is a fixed income instrument that represents an obligation made by a borrower (bond issuer) to an investor (bond holder)

Transparent Pricing • No Exit Load • No TDS Deduction

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

Diversify your Portfolio

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.

Get Regular Income

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

Earn more than Fixed Deposits

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.

Tax Optimization

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.

Terms you should know

Minimum Investment Amount

Minimum investment amount ranges between Rs. 10,000 to Rs. 10,00,000 depending on product type and underlying bonds

Maturity Date

Repayment of principal of the loan at the end of tenure, along with Interest paid periodically or at the end of tenure

Perpetual Bonds

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

Coupon rate is the periodic interest paid by the bond issuer to the bond holder for fixed …

Credit Rating

AAA

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.

AA

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.

A

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.

BBB

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.

BB

Instruments with BB rating are considered to have moderate risk of default with respect to servicing of financial obligations.

B

Instruments with B rating are considered to have high risk of default with respect to timely servicing of financial obligations.

CCC

Instruments with C rating are considered to have very high risk of default with respect to timely servicing of financial obligations.

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