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.
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.
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 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.
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.
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.
Bonds are among the popular financial securities issued by the government and big corporations to borrow money from the general public.
When bond prices move lower (drop), bond yields move higher in return. Similarly, when a bond's price moves higher (increases), its yield will move lower. Short-term results are more difficult to predict.
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.
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.
The financial market is one of the best places to invest money and multiply wealth over time. However, as there are numerous financial instruments where a person can invest, it becomes confusing to choose.
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.
The potential for investment losses that arise due to a change in interest rate is categorized as Interest rate risk. If the interest rate rises, the bond value or the value of other fixed-income investments tends to decline.
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.
The recent rate hike by the Reserve Bank of India has led to the increased popularity of the bond market. Zero-coupon, convertible, and inflation-linked bonds are among the various bonds traded in the bond market.
Invest wise with Expert advice
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.