Fixed Income
Bonds are fixed income instruments that help investors earn stable and predictable returns over a specified period. They are issued by governments, public sector undertakings, financial institutions, and corporates to raise capital from investors.
Bonds generally offer regular interest payouts along with principal repayment at maturity, making them suitable for investors seeking capital preservation and steady income. They can also help diversify portfolios and balance overall investment risk.
Types of Bonds:
- Government Bonds (G-Secs): Issued by the Government of India and considered among the safest investment options due to sovereign backing.
- Corporate Bonds: Issued by companies to raise funds for business expansion and operations, generally offering higher returns compared to government bonds.
- Floating Rate Bonds: Bonds where the interest rate changes periodically based on market interest rates.
- Capital Gain Bonds (54EC Bonds): Special bonds that help investors save capital gains tax under Section 54EC of the Income Tax Act, subject to applicable regulations.
