Start earning 9-11% fixed returns with bonds that are carefully curated.
|Sk Finance Limited||20.00Cr||12 Jun 2025||11.25 %|
|Shriram Finance Limited||250.00Cr||15 Oct 2028||11.05 %|
|Shriram Finance Limited||29.20Cr||30 Aug 2025||11.00 %|
|Shriram Finance Limited||25.00Cr||09 Sep 2025||11.00 %|
|Shriram Finance Limited||10.00Cr||09 Oct 2023||10.75 %|
|Shriram Finance Limited||10.00Cr||30 Sep 2023||10.75 %|
|Shriram Finance Limited||10.00Cr||28 Mar 2024||10.60 %|
|Shriram Finance Limited||10.00Cr||12 Aug 2024||10.60 %|
|Shriram Finance Limited||35.00Cr||12 Dec 2028||10.51 %|
|Shriram Finance Limited||550.00Cr||27 Dec 2024||10.25 %|
AA+ bonds are high-rated investment-grade bonds. CRISIL, ICRA, CARE, and India Ratings are some Indian rating agencies that rate PSU and corporate bonds in India. These rating agencies use many factors to determine a company's bond rating, including financial metrics like interest coverage ratios, leverage ratios, etc., and qualitative factors like corporate governance, industry trends and competitive position. Some of the most common issuers of AA+ rated bonds are public-sector banks and large private-sector companies.
|AAA||These are securities with the highest safety as they have the lowest credit risk and highest safety regarding fulfilling financial obligations.|
|AA||These are securities with high safety as they have very low credit risk and very high safety regarding fulfilling financial obligations.|
|A||These are securities with moderate safety as they have considerably low credit risk and high safety regarding fulfilling financial obligations.|
|BBB||These are securities with moderate safety as they have moderate credit risk and moderate safety regarding fulfilling financial obligations.|
|BB||These are securities with moderate risk regarding fulfilling financial obligations.|
|B||These are securities with high risk regarding fulfilling financial obligations.|
|C||These are securities with extremely high risk regarding fulfilling financial obligations.|
|D||Securities with this rating are expected to default.|
*Ratings for AA to C may include modifiers, such as "+" or "-", to indicate the relative standing within the category. For example, a rating of CRISIL AA+ would indicate a stronger standing than a CRISIL AA. Similarly, a CRISIL AA bond will have a lower default risk than CRISIL AA- bond,
High-risk high return and vice versa is a fundamental concept of investment returns. AA+ bonds have a higher credit risk than AAA-rated bonds and a lower credit risk than AA bonds, so their returns are adjusted accordingly. If, as an investor, you are looking for investment options that provide capital protection and periodic income, you can consider investing in AA+ bonds.
Since AA+ bonds are a relatively safe investment product, they come with the virtue of providing capital preservation. As a result, they are a good investment choice for conservative investors who want regular returns. However, an investor should study the risks before investing in such bonds.
AA+ bonds offer a reliable investment avenue characterised by regular income, stability, and diversification benefits. Issuers with good financial health and robust management practices back these bonds. You can invest in AA+ bonds if looking for non-volatile investment products.
The tax treatment of AA+ bonds is similar to that of other bonds. The interest you earn from AA-A bonds will be taxed as per your income tax slab under the head ‘Income from Other Sources'. 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.
A variety of companies and government-backed entities issue AA+ bonds. You can find AA+ bonds by searching for them on a bond platform, contacting your financial advisor, or asking your broker.