Posts

Showing posts from March, 2022

What role does a corporate bonds market play in economy of a country

Image
  A bond is a debt obligation, where the borrower is a government or private entity and the lender is the investor. Among the different types of bonds available for investors, corporate bonds are a popular choice among investors. Let’s delve deeper into corporate bonds.  What are Corporate Bonds and how do they boost the country’s economy? A corporate bond can be understood as a kind of debt security issued by a private or public company to generate capital. These are sold to investors who get pre-decided interest payments at a fixed or variable rate of interest. When the bond completes its tenure and reaches maturity, the interest payment stops and the amount originally invested by the investor is returned to him. The money a company raises through corporate bonds can be used for various business activities like the purchase of new equipment, building a new plant, increasing production, etc. As businesses expand their activities, it increases production and the supply of goods in the

What is the Future of the Bonds Market in India?

Image
Introduction One of the most vibrant markets in the emerging markets is the Indian bond market, which has been experiencing rapid growth.  Improved interest rates, easier access to instruments, and better liquidity have been a few driving forces behind this expansion. India’s bond market has grown significantly in recent years, but there is still a long way. The recent events may take the country’s bond market in a new direction and could have a long-lasting impact.   This article will cover these events and how they can affect the Indian bond market.  Future of the bonds market in India Different types of bond market in India exist.  Based on the type of bond, the bond market can be government, corporate, municipal bond market, etc. Based on the type of buyer, the bond market can be separated into - primary and secondary bond market s . The following events can affect the future of the bond market in India: 1. India’s inclusion in the global index The government of India has announc

Bonds vs Fixed Deposits

Image
Alternative investment opportunities in India Indian investors have a variety of options when they set out to seek different investment avenues in the country. These may include IPO investment , shares, mutual funds, ETFs, fixed deposits, bonds , and many more. It may be confusing to decide between various investment options, especially if you are a low-risk appetite investor. For such investors, two exemplary investment options are bonds and fixed deposits.  Old-school investors are generally aware of fixed deposits, but they have limited information when it comes to answering questions like what are bonds in India an d how to buy bonds here. To learn more about the top bonds to invest in India , click here to BondsIndia.com .  Let us now know more in detail about bonds and fixed deposits and do a comparative analysis of both. Fixed Deposits Banking and non-banking financial institutions offer Fixed Deposits as a fixed-income instrument to investors.  Fixed Deposits come with gua