INVESTMENT WITH MINIMAL RISK
Bonds & FDs – Fixed deposits offered by banks are most popular investment product by Indian investor in debt category. It assures fixed returns which is mainly suitable for parking of emergency corpus. Bonds is another type of deb security.
Bonds, debt securities issued by government, municipality, or corporation. Borrowers issue bonds to raise money from investors willing to lend them money for a certain amount of time. Mutual Funds is one of the best ways to invest in bonds for retail investors.
We all know that banks offer Fixed Deposits. Similarly, several companies/corporates and NBFCs (Non-Banking Financial Company) are also allowed to collect deposits from general public for a defined period at an agreed interest rate. Deposits offered by corporates are called Corporate Fixed Deposits. The interest rate of Corporate FD is assured and investor has an option to choose the tenure of FD. Furthermore, the interest offered by Corporate FD is slightly better than Bank FD.
There are different types of Bonds in which the investor has an option to invest. e.g.