Bonds

What are Bonds?

Investment Bonds are debt instruments in which the authorized issuer owes the bond holders a debt. Depending on the terms of the type of bonds, the authorized issuer is obliged to pay interest and/or repay the principal later upon maturity. In simpler terms, a bond is a formal contract to repay borrowed money with an interest at fixed intervals. Investment bonds are a way to raise money. When you purchase any type of bond (government, convertible, callable, etc.), you are lending money to the issuer which may be a corporation, the government, a federal agency, or any other entity. In return, the issuer promises to pay a specified rate of interest during the life of the bond. The issuer also repays the face value of the bond when upon maturity of the term.

What are the Types of Bonds?

• Zero Coupon Bonds:- These investment bonds are issued at a discount, but redeemed at the principal.

• G-Sec Bonds:- These are issued by the government and are one of the safest types of bonds to invest your money.

• Interest Linked Bonds:- In these types of bonds, principal amount and interest payments are indexed to inflation.

• Sovereign Gold Bonds:- They are the safest way to buy digital Gold, as they are issued by Govt. of India

• RBI Bonds:- Government of India has announced to launch Floating Rate Savings Bonds, 2020

• Capital Gain Bonds:- 54EC bonds, or capital gains bonds, are one of the best way to save long-term capital gain tax. 54EC bonds are specifically meant for investors earning long-term capital gains and would like tax exemption on these gains.

Why Bonds?

• Capital Preservation:- You capital is protected as investment bonds are a less risky investment option.

• Steady Income:- Although lower as compared to equity, returns on investment bonds are assured.

• Tax Advantage:- Tax Free investment bonds are one of the best options for you if you fall in the higher tax bracket.

Why Us?

• We are Authorised Person of Motilal Oswal Financial Services Ltd.

• Wide array of fixed Income products to choose from

• Paperless Investment

• Online tracking 24*7 across web, terminal and mobile application.