Bond is Debt security or interest-bearing Debt Certificate, which may offer you comparatively lower returns (when compared to Equity) but has very less risk attached to it akin to a Bank Deposit.
When you take a loan, the loan bears some interest rate. This loan must be paid on a specific date. A bond is like a loan where the authorized issuer is obliged to pay the bondholders interest as well as the principal (termed as maturity) at a later date or fixed intervals.
There are many types of Bonds in India which are issued by the Government as well as the private entities to fund specific activities. Bond is issued when funding requirement cannot be met from any other source.
There a basically two types of Bond Markets that exists in India.
Investing in Bond Markets is not as easy as investing in other Financial Markets. The bond market is mostly open to the big Corporates where market lots are available in Crores but smaller lots are also available for individuals. Retail investors can invest in Bond Market via online portals of NSE or BSE.
A new system is going to be launched in the market soon by the government which will allow all the Demat account holders of CDSL and NSDL to transact G-Secs on the RBI-managed Negotiated Dealing System-Order Matching (NDS-OM) platform.
Swaraj Wealth's year of expertise in the Bond Market will help you with your investments in the bond market and will ensure high ROI.
Copyright © 2019 Swaraj Wealth Management Pvt Ltd.All rights reserved.