#Essential
Quasi-Government Bond: Meaning, Rates, Benefits and Risks
Not every government-linked bond is a government security. Some are issued by public institutions that work closely with the government but operate as separate organisations. These instruments are generally known as Quasi-government bonds. Key Takeaways What is a Quasi-Government Bond? The Quasi government bond meaning is easier to understand once the issuer is considered. These […]
Recurring Deposits vs SIP: What Should You Pick in India?
Establishing a consistent monthly savings habit is a fundamental pillar of financial discipline; the commitment to regular contributions is often the most significant factor in long-term wealth accumulation. However, once the decision to save is made, selecting the appropriate financial vehicle becomes the primary objective. In the Indian financial landscape, investors typically evaluate two primary […]
What is a REIT (Real Estate Investment Trust)?
Introduction Bengaluru is known for its delightful weather, notorious traffic, vibrant nightlife and its delightfully far distance from the city to the airport! Beyond these features, Bengaluru is also celebrated for its IT hubs, affectionately known as ‘tech parks’. Among these hubs stands Embassy Manyata, fondly known as “Manyata Tech Park”. Covering 120 acres and […]
Considering Portfolio Diversification: Don’t forget to add Bonds!
Reasons to Diversify your Portfolio with Bonds “Buy all, I want them all,” an ecstatic Monty told his broker over the phone. On the advice of a ‘fin-fluencer,’ he invested all of his pocket money in pharma stocks, believing that the sector would rally post-covid. Observing this incident brought back memories of his time in the US […]
Reinvestment Risk: What It Means and How Investors Can Manage It
A bond may pay on time. The principal may also come back on time. Still, the investor may face a return problem later. This is called Reinvestment Risk. It happens when money received from an investment has to be invested again at a lower rate. Key Takeaways What is reinvestment risk? Reinvestment risk is the […]
Settlement Date: Meaning, Importance and Risks
When an investor buys or sells a security, the order may get placed instantly. But the transaction is not fully complete at that moment. The actual exchange of money and securities happens later. That final completion day is called the Settlement Date. Key Takeaways The Settlement Date is the day when a trade is completed. […]
Settlement Process of Corporate Bonds
Introduction Corporate bonds play a vital role, offering investors a secure and stable way to earn returns. But, behind the scenes of every bond trade lies a critical process that ensures the smooth transfer of securities from one party to another—the settlement process. In India, this process has evolved over time, guided by regulations that […]
Spot Price: Meaning, Examples and Importance for Investors
Prices shown in financial markets do not always refer to the same point in time. One may apply to a transaction happening now, while another may relate to a future date. The Spot Price is the current cash-market value of an asset. It helps investors understand what a share, commodity, currency or bond is worth […]
The Ultimate Guide to Step-Up Bonds
Introduction It is the new year, you decide to get fit and lose the holiday weight you gained. On January 1st, you start going to the gym with determination. You begin with a 5kg biceps curl and feel a bit sore afterward. The next week, you continue to stick to your resolution and return to […]