Bonds are a kind of debt security where the issuer of the bond has the liability to pay interest at the predefined rate & the principal at a later stage. The bonds are an investment instrument which makes the investor a creditor & the company is obliged to pay the principal & the interest. The bonds generally have some locking period typically in the range of 5-10 years. This lock in period is also known as the maturity period of the bonds. The bonds are also very commonly known as Non Convertible Debentures or NCDs in short as they are virtually debentures issued by the company but they cannot be converted into shares & hence they are termed as non convertible. Hence generally Bonds & NCDs are one & the other same thing.
These bonds are issued by different corporate or private companies. These bonds can be secured bonds or unsecured bonds. The secured bonds carry high security & hence returns / interest is lower as compared to unsecured bonds which have low security but high returns.
This is the most popular type of bonds in India. Investment in these bonds qualify as tax exemption under section 80C of IT act and hence these bonds generally come in the market during Nov-March season of tax planning. Almost all the bonds in india are listed on NSE & BSE, so they can be traded on exchange platform easily.
Banks or Financial Institutions like NABARD, SIDBI, HDFC, IDBI et
Bonds issued by Government of India or the PSU (Public Sector Undertakings) of the GOI
IT'S TIME TO HAVE SOME FUN!
Your family deserves this time more than we do.
Share happiness with your family today & come back soon. We will be right here.
Investment to ek bahana hai,
humein to khushiyon ko badhana hai.
E-mail
askus@rmoneyindia.com
Customer Care
+91-9568654321