Latest Update About Bonds Market In India

Fixed deposits in India have always been a preferred investment option for retail investors owing to the great features it carries. The fixed income, predetermined rate of interest, predefined intervals, and capital protection subject to the limit of five lakh make it more attractive. What is a Corporate FD? Company Fixed Deposit also known as Corporate FD offered by Financial and Non-Banking financial companies (NBFCs) is a term deposit held at a fixed rate of interest over a fixed period. The date of maturity of Corporate FD can range from a few months to a few years. Quick facts  It is similar to bank FDs.  Corporate FDs are preferred relatively for a better return  It has a high degree of safety  Guaranteed returns  Flexibility to choose the tenure  Predefined interest rate Is corporate FD safe in India? Issuers facilitating Corporate FDs have ratings that make it safe and can be a good source of investment for risk-averse people. Unlike other investmen...

Corporate bonds can be a reliable source of investment for a few retail investors. The need is to keep in mind the essential factors, advantages, risks, and rewards to avoid disappointment. Retail investors primarily look for investments that can help them earn a high yield on investments. For such investors, choosing to invest in high-yield corporate bonds can be a good decision. A high-yield corporate bond is known to offer a higher rate of interest to the investors, but it carries a higher default risk. When making your decision of buying high-yield corporate bonds, it is a promising idea to choose an issuer with a AAA credit rating. Make sure you consider the risks and your financial goals. Effective investment planning will help you enjoy a higher yield and peace of mind. Let us also understand the types of corporate bonds for a better investment decision. Below are the common corporate bond types you can choose for a regular interest income and return of principal on maturity. Co...