Blogs
Basic Bond Investment Objectives – A beginner’s guide to investing in bonds in 2023
“It’s only when the tide goes out that you learn who has been swimming naked” – WarrenBuffet The popular quote still holds true in 2023 where the world is watching as a sensational story of a US-based short seller taking on the Indian behemoth comes to light. Every other equity investor is hoping for a […]
Difference Between Primary and Secondary Market
Introduction: In the financial ecosystem, new and various types of financial instruments are regularly issued to the public to suit their individual needs. When it comes to equity investing, one can buy and sell equities in primary and secondary market. The primary market is where securities are first issued, after which they are exchanged on […]
Terms used in a Bond Public Issue (Bond IPO)
Introduction A Bond Public Issue, also known as Bond IPO, is a process through which a company raises funds by issuing bonds to the public. In a Bond IPO, the issuer sets the terms of the bond, including the interest rate and maturity date, and sells the bonds to institutional and individual investors through a […]
Considering Portfolio Diversification: Don’t forget to add Bonds!
Reasons to Diversify your Portfolio with Bonds “Buy all, I want them all,” an ecstatic Monty told his broker over the phone. On the advice of a ‘fin-fluencer,’ he invested all of his pocket money in pharma stocks, believing that the sector would rally post-covid. Observing this incident brought back memories of his time in the US […]
How To Calculate Bond Yield Online?
Return on investment is one of the key drivers for your investment decision. In the case of bond investment, bond yield represents your return on investment. It is the percentage return on a bond investment and is represented as the ratio of the annual coupon payments to the bond’s current market price. The higher the […]
Why Invest In Bonds?
Introduction Over the past two years, India’s investment market has seen a sharp rise in the number of retail investors beginning to populate their portfolios. There has been an influx of liquidity into India’s financial markets, including equities, derivatives and commodities. However, not all financial instruments are made the same. Equities with higher returns are […]
What are RBI Floating Rate Saving Bonds?
Introduction The Government borrows funds from the public to finance its various economic and developmental activities. This borrowing takes the form of bonds. The Government issues bonds to the public at a guaranteed interest rate. When the public invests in these bonds, they lend money to the government and earn guaranteed investment returns. There are […]
What Is A Perpetual Bond
Introduction Bonds can be issued by corporations or governments to serve as a source of financing. Those that buy bonds are effectively providing the issuers with a loan. In this case, the issuer promises the bond purchaser periodic interest payments in exchange for the loans. A bond’s maturity date is when your investment will be […]
Difference between Coupon Rate and Bond Yield
Coupon Rate Vs Bond Yield: What are the Differences? The coupon rate and bond yield are important concepts associated with bonds. If you want to invest in bonds, you should know about the bond coupon, bond yield, bond investment return, and the major differences between coupon rate and bond yield (Coupon Vs Yield). A coupon […]