What are Bonds?
Bonds are fixed-income investment instruments where you lend money to a government or a company for a specific period. In return, you receive regular interest (coupon) and the principal amount at maturity.
- Government Bonds (G-Sec / RBI Bonds) Issued by the Government of India with high safety.
- Corporate Bonds Issued by companies offering relatively higher returns.
- Tax-Free Bonds Interest earned is exempt from tax (as per applicable laws).
- NCDs (Non-Convertible Debentures) Fixed return instruments issued by corporates.