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.

Accretive in bonds or accretion refers to the gradual increase in value of a bond's principal over time due to the passage of time.

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.

Bonds are a financial instrument issued by companies to raise capital and fund their business operations. The company is called the issuer, and the buyer is called the investor or bondholder.

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.

Bonds have become the go-to investment option for investors who want to limit the losses from other investments by earning a regular interest on the principal amount they invest in bonds.

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.

As an investor, you will be paid interest during the life of the bond and receive the principal amount back at the end of the bond’s life (or maturity) or at the end of a dedicated period in which the interest amount is credited to your account.

Irrespective of the investment type, decision-making entails detailed market research and analysis. Investors use a combination of fundamental and technical analysis to evaluate the investment's worth. Various research reports, financials, and industry reviews assist in chalking out an investment plan.

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.

The bond market has flourished rapidly over time. There are varieties of bonds in the market and one of the less risky ones is government bonds.