Governments or corporations issue bonds to raise funds for specific purposes. Bonds offer regular interest payment at predetermined intervals and return of the principal amount at the end of the maturity period. Deep discount bonds are offered at a much lower face or par value. These bonds offer a return greater than the amount received …
Deep Discount Bonds: Working, Calculation and Example Read More »
Many individuals find bond funds efficient to invest in rather than buying securities separately. These funds help an investor earn monthly income. To learn more about a bond fund, its types, examples, benefits, and more scroll through this page. What Is a Bond Fund? A bond fund also known as a debt fund is used …
Inflation-indexed bonds or Inflation bonds are issued by the government and are one of the safest investment options for individuals who want to protect their funds from inflation. When high inflation erodes the profit, bonds like inflation-indexed bonds safeguard one’s investments. What are Inflation Bonds? The Government introduced inflation-indexed bonds or IIBs for the first …
HDFC Bank is the world’s 5th largest bank and India’s largest private sector by market capitalization and assets. It offers a wide range of FD and RD schemes, encouraging citizens of all ages to invest small amounts each month and get favourable returns while building a habit of saving. Here is a comprehensive guide to …
HDFC Bank Recurring Deposit Rates – How to calculate Read More »
A surety is an agreement that one party makes with a promise to comply, pay financial obligation/s, or, perform or refrain from a specific task. A surety bond is a three-party contract where surety guarantees obligations of principal to obligee. To know more about surety bonds go through this blog. What Are Surety Bonds? Surety …
As you already know, bonds are fixed-income instruments that are issued by governments, corporations and similar bodies to fund big projects. These might include expansion and maintenance of railways, power plants and construction of affordable housing facilities. Bonds are high-security debt instruments that are categorised under fixed income asset class. They come with a maturity …
What is a Tax-Free Bond – Its Types and How to Invest? Read More »
Here are the best fixed deposit interest rates that you must know.
ETF has become quite popular in India and overseas. These funds allow access to various sectors at low costs. Learn everything about them with this blog.
Learn more about Gold Bond Investment in India – benefits, drawbacks and how to buy them.
Very often, you might have come across banks and NBFCs offering loan facilities against fixed deposits. The car loan against FD facility is one of the additional benefits provided by FD schemes besides high-yielding returns. As the name suggests, this facility allows you to apply for a loan by leveraging your ongoing FD investment. Keep …
Car Loan Against FD – Interest rates and How to Apply? Read More »
Fixed deposits are one of the safest means of investment. However, there are times when we need to break our FDs before maturity. It can be due to several circumstances like financial emergencies or to switch to a better investment option. In such cases, premature FD withdrawal or breaking an FD can often seem troublesome.At …
How to Close FD in BOB – Online and Offline Process Read More »
Do you want a fixed income but want to diversify your investment portfolio at the same time? Then, you must know about the different types of debentures. Before we dive into more details about its types, you may want to know what debentures are. Well, these are long-term debt financial instruments issued by governments or …
Municipal bond markets in India initially faced challenges despite decentralization efforts. However, recent progress suggests a potential upside. Between 2017 and 2022, Rs. 3,840 crore was raised through municipal bonds. Despite this, grant aid remains the primary method of financing city projects. Municipal bonds offer a safe investment option as they are backed by the …
Fixed deposit is a highly popular investment option among risk-averse individuals, known for its high-yield and assured returns. Considered a better alternative to savings accounts, it comes with flexible tenure and attractive interest rates. While investing your hard-earned money in FD is a secured option, you will be subject to paying tax on FD interest. …
In today’s financial landscape, bonds are a popular investment avenue, serving as a means for an issuer to raise funds and offering a fixed income to investors in return for the capital invested. There are several types of bonds, categorised according to various aspects. Callable and non-callable bonds are two common types of bonds, categorised …
With an aim to raise capital for green infrastructure projects, the finance minister announced in the February 2022 Budget that the government will be issuing sovereign green bonds. These securities will help finance renewable energy projects, which will facilitate India’s transition to clean energy and achieve its goals of net-zero carbon emissions by 2070. If …
Sovereign Green Bonds – Framework and Comparison Read More »
When it comes to fixed-income securities, bonds are the first choice of most investors. These assets come with a long-term investment horizon and generate interest at a fixed rate. However, to make an informed choice while purchasing bonds, understanding bond coupon rate is essential. Keep reading to learn more. What Is Coupon Rate in Bonds? …
Prior to the introduction of the CKYC number, individuals initiating a new financial relationship with an entity had to undergo multiple levels of KYC (Know Your Customer) verifications. This verification process used to be time-consuming, adding the hassle of submitting KYC documents individually to each financial institution from which individuals availed services. In 2017, the …
A bond is a debt investment where the investor lends money to a company or government and earns interest. Yield curve analysis is essential for predicting the interest and profit of bonds. Understanding these curves helps in making informed investment decisions for maximum returns. This blog discusses the types of yield curves, their meaning, their …
Yield Curve: Working, Types and Impacting Factors Read More »
A bond market, also known as a debt market, stands out as one of the largest securities markets in the world, offering a wide range of investment options. There are several government bodies, international organisations, municipalities, corporations and individuals across the world issuing bonds through this market to raise money. In this blog, you will …
When discussions about bonds revolve, we often hear bond yields going up and down. The bond yield represents what a bondholder will receive by investing in a bond. In this blog, you will get a clear understanding of a bond yield in India. What Is a Bond Yield? A bond yield is what you expect …
NHAI bonds are one of the capital gain bonds. Investing in these bonds lets you avoid taxation on the capital gain from selling a capital asset such as real estate. By investing in NHAI asset bonds you get tax exemption while contributing to your country’s development. To learn more about NHAI bonds and how to …
An indemnity bond acts like a security to a bondholder. It is primarily used in the loan and mortgage industry, working as an obligation that protects a lender. A person, signing an indemnity bond or an indemnification bond, is giving assurance to the lender that he/she will suffer the loss if he/she breaches the contractual …
Capital gain bonds are one of the best investment avenues for securing long-term tax exemptions. In other words, you can avoid taxation on the profit of selling capital assets by investing those profits into specific assets or bonds. This tax exemption is also known as capital gains exemption. In this blog, we will discuss various …
Several companies and governments borrow money from investors by issuing bonds. In return, the entities promise to pay a steady interest rate on the amount invested. Callable bonds are one such type of bond, with the unique feature of allowing investors a right to call back their holdings before their maturity. In this blog, we …
A puttable bond is a type of debt security that allows bondholders to request early principal repayment from an issuer. This embedded put option serves as an incentive for investors even though the bond offers lower yields. This option can be exercised based on specific events, conditions or predetermined times. Learn more about how puttable …
Puttable Bonds: Types, Working, Advantages, & Example Read More »
Non-convertible debentures (NCDs) have become a popular choice among investors for offering a fixed income. These are investments that do not rely on any collateral instead, they depend on the financial strength and goodwill of the company issuing them. Well-established companies use NCDs to raise capital from investors at a fixed interest rate. In this …
Non Convertible Debentures – Types, features and benefits Read More »
The primary purpose of issuing bonds for any organisation is to raise capital in the form of a loan. Bonds could be of various types such as government bonds, public sector bonds, tax-free bonds or corporate bonds including convertible and non-convertible bonds. Here in this article, we have discussed more on convertible bonds, their types, …
Convertible Bonds – Types, features and advantages Read More »
There are times when the government requires funds to meet some of its short-term financial obligations. In such a scenario the central government approaches the general public to raise funds. Therefore RBI issues securities which are backed by the government of India, one such debt instrument is Treasury Bill. It is a promissory note on …
Opting for a floating-rate bond might be a perfect choice for you if you want to invest in a bond with a variable interest rate. These bond’s interest rates vary, depending on the benchmark set. In this guide, we will learn about floating-rate bonds, how these bonds work, advantages, disadvantages and more. What is a …
