Introduction When it comes to India’s financial mechanisms, one instrument takes center stage for its crucial role in managing short-term cash dynamics—the Cash Management Bill (CMB). Exclusively issued by the central government, the CMB plays a pivotal role in addressing temporary cash flow imbalances. This exploration delves into the subtleties of cash management bills, unveiling […]

Glossary 1. Accrued Interest Accrued interest is the interest that accumulates on a bond between coupon payments. For example, if you buy a bond between its payment dates, you may owe the seller accrued interest for the time they held the bond. 2. Accretion of Bonds Accretion of bonds means that over time, the value […]

Introduction It’s remarkable how online shopping has seamlessly integrated into our lives. A decade ago, many were hesitant about making online purchases. Now, we buy everything from clothes to groceries, medicines, jewelry and even Gangajal online (yes, look it up). The advancement of technology and increased earning power, accelerated by the pandemic, has expedited this […]

Introduction The ever-changing financial landscape necessitates the continuous updating of financial regulations. Therefore, the Union Budget 2023 has introduced a notable modification that impacts investors involved in listed debt securities. From April onwards, Tax Deduction at Source (TDS) will be applicable to interest income earned from listed bonds. This move is aimed at increasing transparency, […]

Introduction Bonds are like the steady hand in your financial journey, providing a reliable stream of revenue and helping to shield your investments from the ups and downs of the market. They’re like your safety net, ensuring that even when other assets in your portfolio are fluctuating, you have something secure to rely on. Just […]

Introduction Mr. Mehta, a diligent accountant in the 90s, is eager to invest in a corporate bond. He leaves work early, navigates through the bustling streets to meet his broker and sits down in a dimly lit office surrounded by stacks of paperwork. After painstakingly filling out numerous forms and writing a cheque, Mr. Mehta […]

Return on investment is one of the key drivers for your investment decision. In the case of bond investment, bond yield represents your return on investment. It is the percentage return on a bond investment and is represented as the ratio of the annual coupon payments to the bond’s current market price. The higher the […]

Introduction Investing in fixed-income instruments is a great way to secure a passive income while reducing portfolio risk. Bonds are one of the best examples when it comes to investing in fixed-income securities. The interest that bonds pay to the bondholder is often represented as the coupon rate. For instance, if a corporate bond has […]

Introduction In a buffet of debt investments, while the humble Government Bonds may not rank as the most enticing dish in comparison to other investment options, the foundation it can provide your investments is unparalleled. It wouldn’t be farfetched to say that in most countries, these government securities play an essential function in the entire […]