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Fixed Income Bonds

Post Covid, apart from Gold, there is another investment option more people has looked into it are the Bonds.

There is the reason people behind it for buying bonds, due to the low interest rates and expect to raise high in the coming years.


What are Bonds?

For the development plans, the government will borrow the from public and will provide the interest amount as a dividend.


How bonds are useful?

Bonds are very safe since it is backed by government and also bonds are termed as Fixed income instruments.


What are the different types of bonds?

  • Fixed Bonds
  • Floating Rate Bonds
  • Sovereign Gold Bonds
  • Inflation Indexed Bonds
  • Tax free bonds
  • RBI Bonds
  • 54 EC(Capital Bonds)


What is the tenure of the bonds?

The tenure will be from 5 years to 40 years.


What is the Min Investment for bonds?

Usually it will start from 1,000 rupees.


What is the max limit?

There is no maximum limit for investing in bonds.


What is the interest rate?

It would be around 2.5%(SGB) to 7.5%(Fixed Bonds)


Do we need to pay Tax after maturity?

Yes.


Shall I avail Loan Facility on bonds?

Not all bonds will allow loan facility, but mostly it allows.


What is the coupon rate in bonds?

Coupon rate is the interest rate of the bonds.


How to read the bond coupon 7.75% GOI 2025?

First one - Interest rate

Second one - Govt of India

2025 - Maturity Date



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