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.

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

The maturity date refers to the date when the principal amount of an investment, such as a bond, note or other debt instrument becomes due and is repaid to the investor.

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.

Investors utilise the capital they have saved over time to start their journey in the Indian financial market.

In a stock ETF, the fund is generally composed of all the stocks in the index. This is not the case in most fixed income ETFs. The fund holds a fraction of the bonds that make up the underlying index.

People invest in two of the most widely invested asset classes: Equities and Debt. While they may start their investment journey with equities, they tend to diversify into debt to earn regular income in the form of interest.

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.

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.

The investment options have increased in the market over the years, and one of them is bonds. They not only keep the capital safe but also enhance the passive income levels of the investor.

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

The simplest definition of a bond is when you invest or loan a sum of money to a government or corporate entity for a specific period (maturity period).

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.

Bonds are considered one of the safest investment choices compared to stock, derivatives, and other financial instruments.