Bonds are a great investment instrument for retail and institutional investors. Bond interest rates is a key feature. It is an unavoidable factor that help an investor take better decision. Bond interest rate is important for both the issuer and a bondholder. Therefore, it cannot be avoided.
What Are Bonds?
A bond in simple language is a source to fulfil the need of money required for varied purposes. The entity who issues bonds is known issuer and the one who buys a bond is called a bondholder. A bond has features that include face value, coupon rate, maturity, principal, issuer, bonds,
Types Of Bonds
The classification of bonds can help investors choose a suitable bond. You can buy bonds online after considering your investment needs. All the bonds are good, but a few bonds have added advantage. You can consider government bonds if you wish to play safe. Corporate bonds are known to provide higher yield. You can take into due consideration the credit rating. It can help you overcome the risk of default.
Bonds can be categorized in the following four types:
- Corporate Bonds
- Municipal Bonds
- Government Bonds
- Agency Bonds
What is bond yield?
Every bond provides you a fixed interest. It is chosen for the yield it provides. A bond yield is the deciding factor. A bond yield in simple term is the return earned by a bondholder from the interest declared on a bond also known as coupon payments.
Bonds give you –
- Fixed Income
- Predictable Income
- Higher Returns
The Top bonds to invest in India
- ICICI Prudential All Seasons Bond Fund – Direct Plan – Growth
- Axis Dynamic Bond Fund – Direct Plan – Growth
- SBI Dynamic Bond Fund – Direct Plan – Growth
- ICICI Prudential All Seasons Bond Fund
Investing In Bonds have been made simple and easy for you.
Many online platforms have simplified bonds for the common investors. The amount to be invested can be chosen considering certain essentials. Follow the common process designed by these companies.
- Complete your KYC online
- Explore a wide variety of bonds
- Select the bonds you wish to buy
- Choose your preferred mode of payment.
- Initiate the transaction and thus you are ready to start trading in Bonds
About bond market
If you are new to bonds, consider reading published articles. You can visit online websites like BondsIndia.com and others. Bond market is categorised majorly into two categories. Primary market and secondary market.
Want are debt funds?
Debt mutual funds are known to generate income from the investments. It is a kind of mutual funds that aim at making investment
Advantage of Making Investments or Saving
- Saving or investments in fixed income securities is your support in need
- Investing in fixed income securities like bonds can help you minimize risks
- It is good option to diversify your portfolio and balance your portfolio
If you are looking to invest do, consider bond interest rates as it can help you make wise decision.