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Search from 17,000+ Bonds in India

Explore the world of bonds and find the ones that fit perfectly in your portfolio from over 14 categories.

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What are Bonds?

Bonds are debt instruments that belong to the fixed-income asset class. They enable organisations to raise funds and fulfil their capital requirements. Bonds are issued by governments, corporations, municipalities, states, and other organisations, to finance their respective projects. They have a maturity date, upon which the issuer/borrower must repay the principal amount and interest to the investor.

Features of Bonds

Bonds are debt securities that provide fixed and higher returns debt instruments. However, the risks associated with bonds are much less as compared to equities.

Face Value

The face value of a bond is the price of a single unit of the bond issued by a company. This price, also known as the principal, nominal, or par value, is the amount the issuer is legally obligated to repay the investor at the end of the bond's term. For example, if you purchase a corporate bond with a face value of Rs. 6,500, the issuer must repay you Rs. 6,500 plus interest when the bond matures.

Interest or Coupon Rate

Bonds earn fixed or floating interest rates throughout their term, which are paid periodically to the investors. The interest rate, also known as the coupon rate, was paid out as paper coupons attached to the bond. The interest earned on a bond depends on various factors, such as the tenure of the bond and the issuer's reputation in the public debt market.

Tenure of Bonds

Bonds with maturity periods below five years are short-term bonds, while five to twelve years are intermediate-term bonds. Long-term bonds usually have a term exceeding twelve years.

Credit Quality

The credit quality of a bond refers to the consensus of creditors on the performance of a company's assets in the long term. Credit rating agencies classify bonds based on the risk of a company defaulting on debt repayment. They assign risk grades to private players in the market and categorise bonds into investment-grade and non-investment-grade debt instruments.

Bonds handpicked by experts

Explore a collection of corporate bonds that are curated by experts after carefully evaluating their risks and returns.

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U GRO Apr'24
16 months
Coupon
10.25 %
Issue Price
₹1,000
Issue Date
27 Feb 2024
Maturity Date
27 Aug 2025
Interest Repayment
Monthly
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Oxyzo Apr'24
~9 months
Coupon
0.00 %
Issue Price
₹1,00,000
Issue Date
06 Jan 2023
Maturity Date
24 Jan 2025
Interest Repayment
At Maturity
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Navi Feb'24
~18 months
Coupon
10.75 %
Issue Price
₹1,000
Issue Date
18 Jul 2023
Maturity Date
18 Oct 2025
Interest Repayment
Annually

Popular Bond Categories in India

NBFCs in India

NBFCs are financial institutions that do not have a banking licence from the Reserve Bank of India, but it regulates them. However, they are not subject to the same regulations as banks.

Frequently asked questions about Bonds in India

What are the risks of investing in bonds?

Investing in bonds in the Indian market entails certain risks. Interest rate fluctuations can impact bond prices, posing interest rate risk. Inflation risk must be considered as it can erode the purchasing power of fixed coupon payments. Additionally, credit risk exists, especially with bonds issued by entities with lower credit ratings, increasing the likelihood of default.

How do I choose the best bonds for my portfolio?

To select the best bonds for your portfolio in the Indian market, consider the issuer's credit rating, offered yield, maturity period, and prevailing market conditions. Thorough research or guidance from a financial advisor can help you make informed choices based on your investment goals and risk tolerance.

Can I sell my bonds before they mature?

Yes, you can sell bonds before their maturity in the Indian market. However, it's important to note that the market price at the time of sale may be higher or lower than the face value, influenced by factors like prevailing interest rates and bond demand. Selling bonds prematurely may result in capital gains or losses, which may have tax implications.

What are the tax implications of investing in bonds?

Bond investments generate taxability under two heads. The interest income is subject to taxation at an individual slab rate under the 'income from other sources’ category. While the selling price and the holding period of the bond determine capital gains from bonds. A holding period of 12 months or more is considered long-term for listed bonds, while for unlisted bonds, it's 36 months. Short-term gains for listed and unlisted bonds are taxed at the individual slab rate. Long-term gains are taxed at 10% without indexation for listed bonds and 20% for unlisted bonds.

What is the minimum investment required for bonds?

The minimum investment required for bonds in the Indian market varies depending on the specific bond offering. Different bonds may have varying minimum investment thresholds, typically outlined in the bond issuance details. It is advisable to consult the issuer or a financial advisor to determine the specific minimum investment requirements for your bond investments.
Disclaimer: The facts and information on this page are for information and awareness purposes only. No information provided here is intended towards any specific user and should not be construed as investment advice or a recommendation of any kind whatsoever. You are requested to consult with your professional investment advisor or tax advisor for specific directions on any investments in any securities including the bonds mentioned on this page before making any investment decision. Wint Wealth shall not be liable for any losses incurred by you based on an investment decision utilising the information on this page.