Home
Loans
Home LoanPersonal LoanBusiness LoanLoan Against Property
Wealth
Mutual FundsSIPNPS
Insurance
Term InsuranceHealth Insurance
More
LearnBlogAboutContact Talk to an Advisor
BONDS AND FIXED INCOME

Earn Predictable 7–11% Returns with Government and Corporate Bonds

Bonds offer fixed, regular interest income with capital protection. Ideal for retirees, conservative investors, and those looking to balance equity with stable returns in their portfolio.

7–11%
Annual Returns
Capital
Protection
Regular
Interest Payout
Bond Investment Snapshot
Bond TypeAAA Corporate Bond
Coupon Rate9.5% p.a.
Tenure3 Years
PaymentSemi-annual
RatingAAA / CRISIL
KEY FEATURES

Why Include Bonds in Your Portfolio?

Capital Protection

Bonds return the principal at maturity. Unlike equity, the face value is guaranteed as long as the issuer does not default. Government bonds carry zero default risk.

Regular Interest Income

Receive semi-annual or annual coupon payments directly to your bank account. Ideal for retirees and those needing predictable cash flows from their investments.

Portfolio Diversification

Bonds have low or negative correlation with equity markets. Adding bonds to an equity portfolio reduces overall volatility without proportionally reducing returns.

Range of Risk-Return Options

Choose from sovereign gilt bonds (risk-free), AAA corporate bonds (low risk), AA bonds (moderate risk), and high-yield bonds (higher return with higher risk) based on your preference.

Tax Efficiency for Some Bonds

Tax-free bonds issued by government entities like NHAI, PFC, and IRFC offer interest income exempt from income tax. Effective yield post-tax can be higher than FDs for investors in the 30% bracket.

Listed Bonds on Exchange

Many bonds are listed on BSE/NSE and can be bought and sold before maturity if you need liquidity. Secondary market trading provides exit flexibility that FDs do not.

ELIGIBILITY

Who Should Invest in Bonds?

Bonds are ideal for investors seeking predictable income, capital preservation, and portfolio stability.

  • Retirees and near-retirees needing regular income
  • Conservative investors seeking better-than-FD returns
  • High-income earners wanting tax-free income through tax-free bonds
  • Investors with 1–10 year investment horizon
  • Those looking to balance risk in an equity-heavy portfolio
  • NRIs with Indian income looking for stable returns

Documents Required

  • PAN Card
  • Aadhaar Card
  • Bank account (RTGS/NEFT capable)
  • Demat account (for listed bond purchases)
  • KYC documents
  • FATCA declaration for NRIs
THE PROCESS

How It Works

1
Identify Suitable Bonds

Share your investment amount, return expectation, tenure preference, and tax bracket. We recommend suitable bond categories from our current offerings.

2
Review Bond Details

We share full details: issuer, credit rating, coupon rate, payment schedule, maturity date, and liquidity profile. All information is disclosed before you commit.

3
Place Purchase Order

Buy bonds through our platform or via your broker on the secondary market. For primary issues, we assist with the application process and bank transfer.

4
Receive Interest and Maturity Payment

Coupon payments are credited to your registered bank account on schedule. Principal is returned at maturity. We track and notify you of all events.

Frequently Asked Questions

What is the difference between bonds and fixed deposits?
Both provide fixed returns, but bonds offer: (1) higher returns than FDs in most cases, (2) secondary market liquidity for listed bonds, (3) tax-free interest for specific government bonds, and (4) the ability to sell before maturity if needed. FDs are simpler and covered by DICGC insurance up to Rs.5 lakhs, which bonds are not.
How are bond returns taxed?
Interest from corporate bonds is taxed as income in the year it is received, at your applicable income tax slab rate — same as FD interest. Capital gains on bond sale depend on holding period: short-term (under 3 years) is taxed at slab rate; long-term (3+ years) is taxed at 10% without indexation. Tax-free bonds are exempt from interest tax.
What happens if the bond issuer defaults?
For secured bonds, the issuer's assets are liquidated to repay bondholders in priority over equity shareholders. Unsecured bond holders have a lower claim. Government bonds have zero default risk. AAA-rated corporate bonds from PSUs and large corporates have very low historical default rates. Diversification across multiple issuers reduces concentration risk.
Can I sell my bonds before maturity?
Listed bonds can be sold on NSE/BSE through your demat account at market price, which may be above or below face value depending on interest rate movements. Unlisted bonds have limited liquidity and sale requires finding a direct buyer. We guide you on liquidity profile before purchase.
What credit rating should I look for when buying bonds?
AAA is the highest rating indicating the lowest default risk. AA is the next tier — slightly higher yield with slightly higher risk. For conservative investors, we recommend sticking to AA and above. Bonds rated below AA+ offer higher yield but significantly higher default risk and are suitable only for sophisticated investors who understand credit risk.

Build a Stable Income Stream with Fixed-Income Investments

Free bond advisory. We source rated bonds matching your yield, tenure, and tax requirements.