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Anuj Pandey
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Asked: 2022-03-25T19:35:15+05:30 In:

What are the types of financial bonds in India?

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Which are the types of financial bonds in India?

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    1. When an investor chooses against holding the bond till maturity, they sell it to another investor in the market who might be interested in it. To buy a bond in a secondary market you need a bank account for transactions, and a DEMAT account to get the bonds deposited. There are 12 types of bonds inRead more

      When an investor chooses against holding the bond till maturity, they sell it to another investor in the market who might be interested in it. To buy a bond in a secondary market you need a bank account for transactions, and a DEMAT account to get the bonds deposited.

      There are 12 types of bonds in india

      1. PSU Bonds
      2. Corporate Bonds
      3. Tax Free Bonds
      4. Zero Coupon Bonds
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    2. There are several types of financial bonds available in India, including: Government Bonds: These bonds are issued by the Government of India to raise funds for various development and infrastructure projects. They are considered to be relatively safe investments as they are backed by the governmentRead more

      There are several types of financial bonds available in India, including:

      1. Government Bonds: These bonds are issued by the Government of India to raise funds for various development and infrastructure projects. They are considered to be relatively safe investments as they are backed by the government. Examples include Savings Bonds, National Savings Certificates (NSC), and Government Securities (G-Secs).
      2. Corporate Bonds: These bonds are issued by companies to raise funds for their business operations. They have higher yields than government bonds but are considered to be riskier investments as they are not backed by the government.
      3. Municipal Bonds: These bonds are issued by municipalities and local governments to raise funds for public infrastructure projects such as water treatment plants, roads, and bridges. They are considered to be relatively safe investments as they are backed by the local government.
      4. Tax-free Bonds: These bonds are issued by government-owned companies and the government to raise funds for infrastructure projects. The interest earned on these bonds is tax-free, making them an attractive investment option for tax-payers.
      5. Infrastructure Bonds: These bonds are issued by infrastructure companies and are backed by the government. They are intended to raise funds for infrastructure projects such as roads, ports, airports, and power plants.
      6. Foreign Currency Bonds: These bonds are issued by Indian companies and are denominated in foreign currencies. They are intended to raise funds from international markets and are considered to be relatively safe investments.

      It’s important to note that bonds are subject to interest rate risk and credit risk, and returns are not guaranteed. It’s always recommended to do your own research and consult with a financial advisor before making any investment decisions. Additionally, the bond’s performance in past years should not be the only criteria to select a bond. One should also consider the issuer’s credit rating, maturity date, yield, and other factors before investing.

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