Explore Bonds

DID YOU KNOW BONDS CAN GIVE YOU MORE THAN PROMISED RETURNS BUT NEVER LESS!

Explore the different kinds of bonds and their top features in this section. Curated specially to help you decide the types of bonds that suit your investment needs the best. Bonds are the only financial instrument that let you truly diversify with debt in your portfolio.

Government Securities

Government Securities are considered the gold standard when it comes to investment safety. They enjoy a sovereign status.

Although never promising very high returns, G-Secs usually give an added advantage of 2-3% over FDs.

When you invest in G-Secs, you not only give yourself a safe option with predictable growth - you also invest in the development of the country.

G-Secs are issued to fund various government expenditures ranging from development of roads, highways, power generation to strengthening our army & public services.

When State Governments issue bonds, they are called SDLs or State Development Loans.

Some other bonds can also be technically classified under G-Secs - like SGBs & Tax-free bonds.

Feature

  • Sovereign Safety
  • Government Backed
  • High Safety With Moderate Returns
  • Contributes Towards Development Of The Nation

Sovereign Gold Bonds

SGBs are one of most profitable ways to invest in ‘digital’ Gold. Issued by RBI, they too enjoy a sovereign status, and are issued in denominations of 1 gram of Gold.

While the price of Gold determines the value of the unit held by you, these bonds give you an additional return of 2.5% per annum.

The tenure for SGBs is 8 years, but they can be traded in the market in case you want to purchase the bond with a shorter term to maturity, or to sell your ‘digital’ Gold before maturity. With extremely high safety and a track record of giving an average of 10% annual returns for the past 15 years SGBs are a smart and convenient way to invest in Gold.

Feature

  • Gold In Digital Form
  • 2.5% Advantage Over Other Digital Gold Investments
  • Easy To Keep Safe, Store And Transfer
  • Can Be Sold In The Secondary Market Before Maturity

PSU Bonds

PSU Bonds are issued by Government Sector Companies and Undertakings that the Central or the State Government has 51% or more stake in.

Considered second only to sovereign bonds in terms of safety, PSU bonds find great appeal amongst safety conscious investors who want more from their money.

There are different types of PSU bonds, including fixed-rate bonds, floating-rate bonds, inflation-indexed bonds, zero-coupon bonds, etc… with terms and conditions that suit various investment requirements.

The typical tenure for PSU bonds is set between 5 to 10 years, therefore best suited to long-term investments. However, they can be sold easily if the investor needs liquidity.

Feature

  • Second Only To Government Securities In Safety
  • More Returns On Investment Than Fds
  • Good For Long-Term, Risk-Averse Investors
  • Wide Range Of Issuers To Choose From

NBFC Bonds

NBFC Bonds are issued by Non Banking Financial Institutions - some of the popular ones you may have heard of are L&T Finance, Shriram Transport Finance, Bajaj Finance, LIC, etc…

NBFC Bonds usually offer higher interest rate than G-Secs and have to be gauged for their safety by the investor. SEBI regulated rating agencies assign ratings where AAA is considered the safest.

NBFCs cannot raise funds like Banks, they can only do so through term-deposits - therefore Bonds become one of the primary ways in which NBFCs borrow money, often at rates more advantageous than what Banks offer them.

Feature

  • Big Range Of Returns
  • Best For Investors With A Wide Risk Profile
  • Offers Higher Returns Than Bank FDs And Government Securities
  • Great Tool For Diversifying Your Fixed-Income Portfolio

Tax-Free Bonds

As the name suggests, the interest earned from investing in these bonds is not taxable.

Due to this feature, these bonds are very attractive for HNI looking to create a safe store of wealth that keeps growing at inflation beating rates.

Typically offering returns in the 5-7% range, the tenure for these bonds is set mostly at 10, 15 or 20 years.

Feature

  • Used To Save Tax
  • Tax Adjusted Returns
  • Highest Rating Of AAA
  • Usually Issued By Psus

Bond ETFs

An ETF is a type of pooled investment security that holds multiple underlying assets rather than just one, whereas in bond ETFs the investment is exclusively in bonds.

Also, unlike mutual funds, bond ETFs can be traded on exchange directly.

Bond ETFs are relatively more liquid and cost-effective as it offers diversified bond holdings across a range of bond types.

It also pays dividends on a monthly basis based on the interest income earned on the bonds held in the fund's portfolio.

Feature

  • Curated Buckets Of Bonds
  • Choose Balanced Bond Investment Options
  • Bond ETFs Tradable And Can Be Sold On The Exchange
  • Wide Range

54-EC

54-EC Bonds are most popular for the function of compensating for long-term capital gain tax and are specifically meant for investors earning long-term capital gains and would like tax exemption on these gainss.

These bonds do not allow any tax exemption on short-term capital gains tax.

The investment in 54EC bonds ranges from 1 bond amounting to Rs. 10,000 upto 500 bonds amounting to Rs. 50 Lakhs in a financial year.

Usually, these bonds come with a lock-in period of 5 years and are non-transferable.

Feature

  • Specialised Function To Save Property Tax
  • Mostly Used While Selling Old Property
  • No TDS On Interest Income
  • Rigid 5 Year Lock-In

Edelweiss Asset Management Limited

ISIN: INF754K01KO2
Interest Payment: -
Yield: 0.00%
1,000.00
6.88%
0 Yrs 8 Mon

Nippon India Mutual Fund

ISIN: INF204KB1882
Interest Payment: -
Yield: 0.00%
5,000.00
6.34%
4 Yrs 3 Mon

LIC Mutual Fund Asset Management Limited

ISIN: INF767K01MV5
Interest Payment: -
Yield: 0.00%
5,000.00
6.73%
6 Yrs 6 Mon

SBI Mutual Fund Trustee Company Private Limited

ISIN: INF200KA1JT1 
Interest Payment: -
Yield: 0.00%
5,000.00
5.17%
9 Yrs 8 Mon

7.62% Kl Sdl 38

ISIN: IN2020230180
Interest Payment: Semi Annual
Yield: 8.00%
10,000.00
7.62%
14Yrs 5Mon

7.66% Gj Sdl 30

ISIN: IN1520230120
Interest Payment: Semi Annual
Yield: 8.00%
10,000.00
7.66%
6Yrs 5Mon

7.72% Ka Sdl 35

ISIN: IN1920230100
Interest Payment: Semi Annual
Yield: 8.00%
10,000.00
7.72%
11Yrs 5Mon

7.70% Tg Sdl 38

ISIN: IN4520230363
Interest Payment: Semi Annual
Yield: 8.00%
10,000.00
7.70%
14Yrs 5Mon

7.68% Cg Sdl 32

ISIN: IN3520230092
Interest Payment: Semi Annual
Yield: 8.00%
10,000.00
7.68%
7Yrs 6Mon

7.70% MH SDL 33

ISIN: IN2220230154
Interest Payment: Semi Annual
Yield: 8.00%
10,000.00
7.70%
9Yrs 4Mon

SGB Nov 28

ISIN: IN0020200286
Interest Payment: Semi Annual
Yield: 2.50%
5,177.00
2.50%
4Yrs 4Mon

SGB Jun 31

ISIN: IN0020230069
Interest Payment: Semi Annual
Yield: 2.50%
5,926.00
2.50%
6Yrs 11Mon

SGB Mar 30

ISIN: IN0020210319
Interest Payment: Semi Annual
Yield: 2.50%
5,109.00
2.50%
5Yrs 8Mon

SGB Feb 32

ISIN: IN0020230184
Interest Payment: Semi Annual
Yield: 2.50%
6,263.00
2.50%
7Yrs 7Mon

SGB Oct 26

ISIN: IN0020180249
Interest Payment: Semi Annual
Yield: 2.50%
3,146.00
2.50%
2Yrs 4Mon

Power Finance Corporation Ltd.

ISIN: INE134E08MO2
Interest Payment: Annual
Sector: Financial Services
Yield: 7.60%
1,00,000.00
7.37%
1Yrs 11Mon

Indian Railway Finance Corporation Limited

ISIN: INE053F07827
Interest Payment: Annual
Sector: Financial Services
Yield: 5.75%
1,000.00
7.32%
1Yrs 5Mon

Indian Renewable Energy Development Agency Limited

ISIN: INE202E07211
Interest Payment: Annual
Sector: Financial Services
Yield: 5.75%
1,000.00
7.53%
1Yrs 6Mon

National Highways Authority Of India

ISIN: INE906B07EG4
Interest Payment: Annual
Sector: Services
Yield: 5.70%
10,00,000.00
7.14%
1Yrs 6Mon

Rec Limited

ISIN: INE020B07JQ2
Interest Payment: Annual
Sector: Financial Services
Yield: 5.75%
1,000.00
7.14%
1Yrs 4Mon

Indian Renewable Energy Development Agency Limited

ISIN: INE202E07211
Interest Payment: Annual
Sector: Financial Services
Yield: 5.75%
1,000.00
7.53%
1Yrs 6Mon

Power Finance Corporation Ltd.

ISIN: INE134E07547
Interest Payment: Annual
Sector: Financial Services
Yield: 5.70%
1,000.00
7.36%
1Yrs 3Mon

National Highways Authority Of India

ISIN: INE906B07EG4
Interest Payment: Annual
Sector: Services
Yield: 5.70%
10,00,000.00
7.14%
1Yrs 6Mon

Rec Limited

ISIN: INE020B07JQ2
Interest Payment: Annual
Sector: Financial Services
Yield: 5.75%
1,000.00
7.14%
1Yrs 8Mon

Cholamandalam Investment And Fin. Co. Ltd

ISIN: INE121A07RV3
Interest Payment: Annual
Sector: Financial Services
Yield: 9.25%
1,000.00
8.60%
6Yrs 6Mon

Muthoot Fincorp Limited

ISIN: INE549K07949
Interest Payment: Monthly
Sector: Financial Services
Yield: 10.90%
1,000.00
8.75%
1Yrs 6Mon

Housing And Urban Development Corporation Limited

ISIN: INE031A07865
Interest Payment: Annual
Sector: Services
Yield: 5.70%
1,000.00
8.01%
3Yrs 7Mon

Jm Financial Products Limited

ISIN: INE523H07BO4
Interest Payment: Annual
Sector: Financial Services
Yield: 9.90%
1,000.00
8.20%
2Yrs 2Mon

Navi Finserv Limited

ISIN: INE342T07460
Interest Payment: Monthly
Sector: Financial Services
Yield: 11.00%
1,000.00
10.65%
2Yrs 8Mon

Hinduja Leyland Finance Limited

ISIN: INE146O08191
Interest Payment: Annual
Sector: Financial Services
Yield: 9.60%
1,000.00
9.75%
2Yrs 2Mon

Hdb Financial Services Limited

ISIN: INE756I07EP9
Interest Payment: Monthly
Sector: Financial Services
Yield: 8.50%
1,000.00
8.07%
1Yrs 9Mon