#Essential
What are PSU Bonds?
Introduction Investment is an essential aspect of long-term wealth creation. However, not everyone has the risk appetite for investing in equity and other market instruments. When it comes to secure investment avenues, fixed deposits are a popular choice but do not always yield inflation-beating returns. For risk-averse investors, Public Sector Undertaking Bonds (PSU Bonds) offer an […]
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 are State Development Loans – Meaning, Features and Benefits
In one of the previous articles, we learned about how the government issues g-secs to fulfill its fiscal requirements. Similarly, state governments issue bonds, commonly known as State Development Loans (SDLs), to meet their budgetary needs. State development loans are debt instruments issued by state governments in India to fund its developmental activities. In the […]
What are Tax-Free Bonds?
Introduction Tax-free bonds are the only fixed-income form with no associated tax liability on the interest earned. You can invest in tax-free bonds and keep 100% of the interest you receive each year. In India, the government or any public sector undertaking can issue tax-free bonds to the public. These bonds are a safe choice […]
Factors Affecting Bond Prices
A bond can be viewed as a debt security issued by a company or governments to finance their capital expenditures and fund growth projects. Simply put, it is a form of loan taken by corporations or governments. Bonds usually offer regular and fixed returns, which make them one of the most stable investment options in […]
Zero coupon Bonds
Zero-coupon or discount bonds are debt security instruments bought at steep discounts and mature at their face value without paying interest throughout their term. These bonds offer the total face value at maturity, giving a significant return equivalent to the interest gained over time. Ideal for investors seeking a simple and effective investment strategy, they […]
What is a Bond? What are the Features of a Bond?
A bond is a popular investment option for a person having limited appetite for risk or wanting a steady source of income. If you are looking at investing your funds towards an instrument that can give you a fixed income and lesser volatility, investing in a bond is a good choice for you. What is […]
What is a Bond IPO – Debt Public Issue
Introduction Economic growth for a country is led by public investment done by the government and private investment done by companies. This requires money (or capital) from other people; as owners themselves may not have all the resources to invest in growth. Traditionally in India, banks have been the primary source of capital for firms. […]
What is a convertible bond? Difference between convertible and non-convertible bond
Introduction Investors are diligently looking for the necessary and sufficient information regarding their investment goals and the financial instruments they have chosen. Bond investments have been the talk of the town in recent years, and sufficient information is being made available through numerous means. However, some early investors are still unclear about the notions of […]