Looking for stable returns beyond traditional options? Let’s decode Non-Convertible Debentures (NCDs). These are debt instruments companies use to raise funds, offering fixed interest payouts without the option to convert into equity. Unlike convertible debentures, NCDs are repaid in full at maturity, making them a go-to for investors craving predictable income. With interest rates often […]

Introduction Investment is an essential aspect of long-term wealth creation. However, not everyone has the risk appetite for investing in equity and other market instruments. When it comes to secure investment avenues, fixed deposits are a popular choice but do not always yield inflation-beating returns. For risk-averse investors, Public Sector Undertaking Bonds (PSU Bonds) offer an […]

Introduction The Government borrows funds from the public to finance its various economic and developmental activities. This borrowing takes the form of bonds. The Government issues bonds to the public at a guaranteed interest rate. When the public invests in these bonds, they lend money to the government and earn guaranteed investment returns. There are […]

Introduction Behavioral finance studies how psychological factors influence people’s decisions and behaviors in the financial markets. It recognizes that people often make irrational decisions based on emotions, biases and psychological factors. One significant bias in this context is availability bias, where decisions are based on the most easily available or memorable information rather than all […]

Introduction If you’ve ever skimmed through a bond’s term sheet, you may have encountered something like this: “Unsecured, Rated, Listed, Government Guaranteed, Redeemable, Taxable Non-Convertible Debentures in the nature of Bonds to be issued in the form of Separately Transferable Redeemable Principal Parts (STRPP)”. While this might seem like dense financial jargon, it’s essential to […]

In one of the previous articles, we learned about how the government issues g-secs to fulfill its fiscal requirements. Similarly, state governments issue bonds, commonly known as State Development Loans (SDLs), to meet their budgetary needs. State development loans are debt instruments issued by state governments in India to fund its developmental activities. In the […]

Introduction Tax-free bonds are the only fixed-income form with no associated tax liability on the interest earned. You can invest in tax-free bonds and keep 100% of the interest you receive each year. In India, the government or any public sector undertaking can issue tax-free bonds to the public. These bonds are a safe choice […]

A bond can be viewed as a debt security issued by a company or governments to finance their capital expenditures and fund growth projects. Simply put, it is a form of loan taken by corporations or governments.  Bonds usually offer regular and fixed returns, which make them one of the most stable investment options in […]

Zero-coupon or discount bonds are debt security instruments bought at steep discounts and mature at their face value without paying interest throughout their term. These bonds offer the total face value at maturity, giving a significant return equivalent to the interest gained over time. Ideal for investors seeking a simple and effective investment strategy, they […]