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What are G-Sec bonds?
Every growing entity needs money, and governments are no different. Governments sometimes need to borrow money from different lenders to fulfil their needs relating to governance and infrastructure. While there are many ways to raise this money, government bonds, also known as G-sec bonds, are becoming a popular option. This benefits investors with an opportunity to invest in a government-backed debt security that offers fixed income and comparatively lower risk. Let us learn more about Indian government bonds and explore their features through this article. As said above, g-sec bonds are a way for the government to raise money and investors to get decent returns. The working of G-sec bonds is similar to that of a regular bond. Here, the money you invest in the bond is the money you are lending the government (Read more)
What is a corporate bonds?
A corporate bonds is a type of loan a corporate take from the general public (retail investors). For the amount of money you lend to the corporate, you will receive fixed interest payments till the maturity of the bond. Once the bond matures, you will receive face value, which is the amount of money you initially invested.Let us take an example to understand this further. Let us suppose you buy Indian corporate bond units at a price of Rs.10,000. Let us say the bond’s interest rate is 7%, and the tenure is five years. This means that you will receive an interest of 7% per annum for the next five years, and at the end of this five-year tenure, you will receive the Rs.10,000 (face value of the bond) back .The above is an example of a fixed-rate company bond. However, there are three other types of corporate bonds too. Let us look at what they are. (Read more)
What are debentures?
Bonds are a well-known investment opportunity where companies and corporates seek debt funding from retail investors, and the investors get fixed-interest payments for the money that they have lent.
But there is a lesser popular investment option similar to bonds that could have an equal amount of potential. They are debentures. But what are debentures? How beneficial is investing in them, and how do they differ from bonds? Let us take a look.
These investment options usually have long-term tenure, which sometimes can be above ten years. Hence, these work the best for investors who are looking for long-term investment (Read More)
