Bonds
Bonds
A bond is a fixed-income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower which includes the details of the loan and its payments.
Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Owners of bonds are debt-holders, or creditors, of the issuer. Bond details include the end date when the principal of the loan is due to be paid to the bond owner and usually include the terms for variable or fixed interest payments made by the borrower.
Why invest in Bonds through Takht Financial?
Investment in bond provides fixed income over the life of the bonds. Though risk is involved, but investment in bonds is a way of preserving capital while investing. Investing in bonds is considered less risky than investing in equity.
01
Diversify your Portfolio :
Offset your investments in MFs, Stocks or Real Estate. Bonds are less volatile and less risky than most assets and offer more stable returns. For example when stocks fall, bond prices usually rise.
02
Get Regular Income :
Bonds offer a predictable income stream by paying interest at regular frequency like monthly, quarterly or annually. Use the regular income to manage ongoing expenses
03
Earn more than Fixed Deposits :
Interest rates on corporate bonds are higher that bank FD rates. They are also tradable on exchange thereby providing liquidity without exit penalty unlike FDs.
04
Tax Optimization :
For those in high tax bracket and investors seeking to optimize taxes may want to consider tax-free bonds issued by highly rated government-owned issuers.
How do I invest in Bonds through Takht Financial?
A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debt holders. Variable or floating interest rates are also now quite common. Bonds can be traded in the market through demat and trading account with us.
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