List of Bonds Articles

Bonds have become one of the most effective financial instruments to offer regular income to the holder without a massive risk of losing the principal amount.

As businesses grow, so do their capital needs. Filing for an IPO is one way in which companies attempt to infuse massive funds into their company. An IPO or Initial Public Offering is the process by which a privately held company or a government entity raises money from the open market.

NCDs are unsecured debt securities. Investment in them could offer good diversification to those who also invest in equities. NCDs of investment grade issuers are also a secure form of investment.

However, one thing that is usually missing when looking at a company’s success is their cash flow or how much capital they have to expand. Expansion is the fundamental factor for a company to ensure sustainability and increased profitability.

When the government or corporate requires funds, they may consider issuing bonds. They are financial instruments which raise funds from the general public for a specific period.

The investment landscape has grown immensely over the years with plenty of financial avenues rising in the market. Thereby, creating opportunities for the individuals to augment their income levels.

Non-Convertible Debentures provide higher interest rates and are issued by corporations, making them an attractive choice for investors looking to diversify their portfolio with corporate debt instruments.

When experienced investors choose the stock market instruments, they invest in multiple asset classes beyond equities. Although certain assets can yield higher returns, they swear by diversifying their investments within the stock market such that they are profitable in case one asset class goes through a bear cycle.

A financial market facilitates the connection between fund seekers and investors. Mainly, there are four types of financial markets: Stock market, bond market, derivatives market, and currency market.

Investing in bonds is considered among the best avenues of earning passive income. Bonds are debt instruments where an investor gives a sum of money to a government or corporate entity for a certain period (maturity period).

Investors diversify and ensure they have uninterrupted profits in every stock market scenario. Starting with equities, they move to the debt instruments such as bonds, where they know they will receive returns through a coupon rate or value appreciation.

Companies need liquidity/money to fund their expansion plans. Issuing debt is one such way of raising funds.

The government issues these bonds to raise debt money from the general public. It raises this money to meet its various expenditure requirements.

Almost every experienced investor diversifies and invests in various asset classes. Although they may start with equities, they do not retrain their investments to trade in stocks.

Bank deposits, Mutual Funds, Stocks, Futures and Options–investors always seek new investment avenues.