Summary

A bond is a fixed-term borrowing tool used by governments or corporations. Investors lend money and receive interest at regular intervals. The interest rate and tenure are set at the beginning. These terms usually stay unchanged. When the bond reaches its maturity date, the original invested amount is returned to the investor.

Documents Required to Invest in Bonds

pan-card pan-card

PAN Card

Mandatory as per SEBI regulations

Identity-and-Address-Proof Identity-and-Address-Proof

Address Proof

Aadhaar Card / Passport / Voter ID / Driving Licence

Bank-Proof Bank-Proof

Bank Account Proof

Cancelled cheque / Bank passbook / 6-month bank statement

Your PAN, Address Proof, and Bank Account Proof will be seamlessly fetched through DigiLocker as a part of our account opening process.

You also need to click a selfie for a liveliness check.

What are Bonds?

Bonds are fixed-income securities that let you lend money to the government, agencies, or companies for a specific period. In return, the issuer pays interest at regular intervals and returns the principal at maturity. They are generally considered safer than stocks because they offer predictable returns, making them suitable for investors seeking stability.

 

Investing in bonds also helps diversify your portfolio, creating a balanced mix of assets. By including government bonds, corporate bonds, or non-convertible debentures (NCDs) in your investment strategy, you can access different opportunities and build a more robust financial future.

How Do Bonds Work?

Bonds are used when a government or a company needs money. Instead of going to a bank, they borrow from people. When you buy a bond, you are giving your money for a fixed time.

During this time, you receive interest at regular intervals. This continues until the bond reaches its end date. Once that happens, the amount you invested is returned.

  • Terms are set at the beginning
    One has to fix the value, rate, rate of interest, and the period of the bond when the bond is declared. These usually stay the same throughout the duration.
  • Interest is paid in intervals
    The issuer makes interest payments at fixed intervals. This could be every few months or once a year, depending on the bond.
  • Amount is returned at maturity
    When the bond completes its term, the full invested amount is paid back to the investor.
  • Prices can change
    If bonds are traded, their price may go up or down depending on market conditions.
     

Types of Bonds

Bonds are not all the same. They differ based on who issues them and how they are designed. Some are linked to government borrowing, while others are connected to company funding needs.

  • Government bonds
    Issued by the government to raise money for public spending. These follow a fixed structure with a set time period and defined interest payments.
  • Corporate bonds
    These come from companies looking to raise funds. The terms, including interest and duration, are decided at the time of issue.
  • Municipal bonds
    Local bodies issue these bonds to support development work. The money is often used for projects like roads, water supply, or other civic services.
  • Zero-coupon bonds
    No regular interest is paid here. These bonds are issued at a lower price and repaid at full value when the term ends.
  • Convertible bonds
    These bonds can be turned into company shares after a certain period. The conditions for conversion are already defined at the start.

What Our Customers Say

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Dinesh Nambiar

Bond investment options are explained clearly.

- Palghar

Alka Sharma

Yield and tenure information is easy to compare.

- Datia

Mahesh Patel

Investment details are displayed in a structured way.

- Surendranagar

Jyoti Verma

Accessing bond-related information is simple.

- Sambalpur

Rahul Chavan

Tracking bond investments feels smooth and organised.

- Ratlam

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