What are bonds?
A bond is a loan you give to a government, PSU or company. In return, the issuer pays you regular interest (the coupon) and repays your principal on the maturity date.
Types of bonds
- Government securities: issued by the central and state governments.
- PSU bonds: issued by public sector undertakings.
- Corporate bonds: issued by companies, usually offering higher interest for higher risk.
- Tax-free bonds: interest is exempt from income tax, available in the secondary market.
Key features
- Regular income: fixed interest paid monthly, quarterly, half-yearly or yearly.
- Credit ratings: rated by agencies like CRISIL, ICRA and CARE, so investors can judge the issuer’s safety.
- Tradable: listed bonds can be sold on the exchange before maturity.
Offer bonds as a Profinity Partner
Add stable, predictable income to your clients’ portfolios with a wide range of bonds, and earn on every investment through the Profinity app.
Investments are subject to market risks. Read all offer and scheme-related documents carefully before investing.