Bonds are debt instruments/ fixed income securities that let the holder enjoy interest
until its maturity (in case of fixed maturity bonds) or in perpetuity (in case of
Bonds attract a better coupon rate (9% - 11%) as compare to fixed deposits that
give an approximate return of 7%.
Bonds can be sold or bought at any time as they are listed on the exchange. The
money shall be reflected in the seller's bank account within 48 hours of the trade
(subject to bank working days).
These bonds do not have any lock in period. Investor can sell the bond without sacrificing
the interest accrued until the bond is held.
A wide variety of companies and public sector banks like IDBI, Syndicate Bank, Bank
of India etc. offer these instruments with varied terms, maturity and coupon rate
Bonds that are held in the DEMAT form are not eligible for Tax deduction at source
( TDS )
Bonds represent a unique opportunity for capital appreciation. With every 1% cut
in bank rate; the bonds rally upwards by 3% - 4% and vice versa.
Badjate Stock & Shares Pvt. Ltd.
201, Mangalam Arcade,
Above Venus Book Centre, Dharampeth Extn. Nagpur - 440010 Maharashtra, India.
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