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.
Broadly classifying there are 4 types of Bonds or NCDs in India. They are :
Almost all the bonds in india are listed on NSE & BSE, so they can be traded on exchange platform easily.
Bonds or NCDs are one of the investment options like equity, mutual funds , bank deposits etc before you. There are certain key benefits of investing in bonds :
Generally the NCDs carry higher rate of return than bank FDs and at the same time they are reasonably secured & safe too. So bonds give you a combination of better returns & low risk in one product. Another advantage of putting money in bonds is tax savings if you invest in tax savings bonds. Bonds come with credit rating scores, so it becomes easier for you to pick & choose the relevant bonds which you find suitable to you.
Whether you are already having an Account with Raghunandan Money or not,you can purchase bonds or NCDs thru us. We facilitate & guide you about picking the right bond doe you & then do the application process. All you have to do is to give us a call or register with us. Anyone having a PAN number whether a Resident Indian or an NRI & a major or minor can purchase bonds. An investor has the option to apply for and receive these bonds in physical form or Demat form as he wishes. However, Raghunandan Money recommends you to get the allotment in demat form most of these bonds are tradable & trading can be done only in the demat form, so whenever you want to sell them or redeem these bonds or NCDs, you may do it easily thru your demat account.
All you have to do is to just give a call or register with Raghunandan Money. Our Investment Advisors get in touch with you & at the first stage they understand your investment objective and your profile. They advise you the right bonds for you, give your complete information of the bonds & a comparative risk-benefit summary to help you understand that bond in detail. If you wish to apply, all you need to do is to fill in the application form, give the cheque or DD for the investment amount & the copy of pan card. What’s more, all these formalities can be done at any of our centers across India or even at your doorstep by our executive personally reaching you.