A bank FD is the first stop for many Indian households, but a corporate FD (also called a company FD or corporate fixed deposit)—and investors often ask, what is corporate fixed deposit—is another option that often offers a higher stated interest rate. In a corporate FD, the money is placed with a company, not a […]

A bond investor may often come across two bonds with different yields and wonder why one is offering more than the other. At first, the answer may look simple. The higher-yield bond seems more attractive. But in the bond market, a higher return is rarely offered without a reason. That reason is often linked to […]

Introduction Imagine you’ve just bought a 10-year government bond, expecting steady returns. A few months later, the Reserve Bank of India (RBI) announces an interest rate hike. Suddenly, the value of your bond starts dropping. You begin to wonder: how can a central bank’s decision influence the value of your bond? This question highlights the […]

Introduction If you happen to be an investor with a limited risk appetite and are looking for investment options with an assured return on the capital, bonds and fixed deposits are ideal for you. Fixed deposits are accepted by both banks as well as Post Offices across the country. Both these investment options are low […]

Introduction In today’s day and age, there are various investment options to choose from. While some options may appear lucrative because of potential high returns, they involve potential risks to capital. For relatively lower risk – investment in NSCs and Bonds are the two most popular options. If you want to be conservative with your […]

Coupon Rate Vs Bond Yield: What are the Differences? The coupon rate and bond yield are important concepts associated with bonds. If you want to invest in bonds, you should know about the bond coupon, bond yield, bond investment return, and the major differences between coupon rate and bond yield (Coupon Vs Yield).  A coupon […]

A loan is the most common method of obtaining the necessary funds. There are numerous ways to borrow money, but the two most common are bonds and debentures. These financial debt instruments have different functions and are issued to attract investment or money from you, i.e., the general public. All debentures are bonds, but not […]

The fixed deposit represented the quintessential example of the Indian investor’s behavior. It meets all the requirements that an average Indian seeks – safety, predictable returns and the assurance of receiving their money back on time. However, in the early 1990s, deep discount bonds emerged as a challenge to the established order. Investors were attracted […]

Picture this: you’re at a busy marketplace. But instead of food or clothes, you see companies offering a way for you to help them grow, simply by lending them your money. In return, they promise to pay you back—plus a little extra for your trouble. That’s the simple idea behind corporate bonds. Corporate bonds are […]