List of Bonds Articles

Fixed income securities are everyone’s favourite while safe capital investing is the first preference. Although, they offer lower returns as compared to equity and other risky investment options.

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 coupon rate is the annualized interest amount. It is the percentage of the face value that a bond pays in one year.

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.

The recent market correction has shifted the choice of investment from equity to debt instruments. Irrespective of the type, investment decisions are a trade-off between the potential rewards and risk involved and each investment is subject to some risk.

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.

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.

Though equity and debt securities are issued to raise money, they differ by structure. Unlike equity, debt securities have prespecified principal repayment and coupon payment schedules.

Indians have a long-standing fascination with physical gold. Some buy it for religious reasons, while some buy it as a tradable commodity to realise profits based on the difference in cost and selling price.

Some prefer to invest in simple financial instruments such as Mutual Funds, while some look towards high-risk, high-reward instruments such as Equity.

In an economic scheme of things, the government and the RBI leverage Bonds within the Open Market Operations to regulate the current liquidity and stabilize borrowing and lending rates.

The coupon rate (also called nominal yield) is the annual coupon payments paid by the bond issuer relative to the bond's face or par value.

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.

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.

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).