Blogs
What is the Inverted Yield Curve and why it matters
In the world of bond investing, the term “yield” is synonymous with “return.” When referring to the “yield” of a 10-year Government Security (G-Sec), it communicates the 10-year return on that particular bond. The yield curve is a graph that shows the relationship between the yields and the maturity dates of a series of bonds. […]
What is G-Sec and State Guaranteed Bond?
Generally, in a developing economy, the expenditure of the central government surpasses its earnings, resulting in an outflow of funds that exceeds the inflow, which is known as a fiscal deficit. To address this deficit, the central government can resort to two measures: printing notes or issuing government securities (borrowing money). However, consistently printing notes […]
Bonds vs Fixed Deposits
In the world of fixed income securities, Bonds and Fixed Deposits (FDs) are two dominant players, each with its own advantages and limitations. While FDs are widely used, bonds remain largely overlooked. In 2017, SEBI conducted a survey* to study investment patterns in households, which revealed that over 95% of households, preferred FDs as their […]
Navigating the Risks of Bond Investing
Mr. Mahesh had always been wary of bond investing. He had heard stories of investors losing money in bond investments because the company defaulted, and the thought of taking such risks made him very anxious. For years, he avoided any investment opportunity that involved bonds, even though his financial advisor tried to explain the benefits […]
What Is The Role Of A Debenture Trustee In Bond Issuances?
Non-Convertible Debentures (NCDs) or simply ‘Debentures’ are long-term debt instruments issued by companies to raise funds from the public or institutions. These are also commonly referred to as ‘Bonds’. A debenture trustee is an independent third party appointed by the company to safeguard the interests of debenture holders. Debenture trustees play a critical role in […]
Bond Redemption – Types of Bond Redemption
What is Bond redemption? Bond redemption is the process by which a bond issuer repays the principal amount of a bond to the bondholder on the bond’s maturity date. When a bond is issued, it has a specified term or maturity date, which is the date when the bond issuer is obligated to pay back […]
Bonds vs. Senior Citizen Savings Scheme: Which One Is Better for You?
Delaying the initiation of a retirement savings plan is a common blunder that many individuals make. Another fundamental error in financial planning is neglecting savings in favour of fulfilling immediate desires. As individuals work throughout their lives, they often aspire to retire and pursue their passions. Therefore, it becomes critical to arrange their finances in […]
Bonds vs. RBI Floating Rate Savings Bonds
Introduction When you speak about investments, the first thought that pops into people’s minds is investing in stock markets. Stock markets can be exciting as individuals can become wealthy overnight. However, it comes with its fair share of risk. Share prices can drop as quickly as they increase, wiping out all of your hard-earned money […]
Sovereign Gold Bond vs. Physical Gold
Mankind has treasured gold for thousands of years. The ancient Egyptians used gold for jewelry and decorative items, while the Greeks and Romans used it for coins and other currency. Gold has a special place in human culture and history. It has been used as a symbol of wealth, power, and prestige. People have been […]