Bonds: Earn up to 12% returns

Explore the wide range of bonds available in India!

bonds of india


What are Bonds

Bonds are fixed-income instruments that give steady income to investors. Bonds can offer a more stable and predictable source of income compared to other types of investments, such as stocks, mutual funds.


Why should you
Invest in Bonds

India’s Bond Market Success

Stock of corporate bonds has outstandingly grown by 4.5 times in the last 11 years


Higher returns than FDs, savings account

Interest rates in March, 2023


Savings Account


Fixed Deposits


Government Bonds


Corporate Bonds


How to identify
the right bonds

Credit Rating

Credit Rating

Not all bonds are equal. Higher the credit rating, safer the bond to invest

Maturity Date

Maturity Date

Staying invested until the maturity date reduces bond risks associated with reinvestment of coupons and liquidity

Yield to Maturity

Yield to Maturity

Yield to maturity indicates the expected annual return of a bond if you stay invested until the bond’s maturity

Still got questions? We’re here to help.

The minimum investment for most bonds is Rs. 10,000. However, for some bonds like SDLs the minimum investment required could be as high as Rs. 10,00,000.
If the bond owner had nominated someone, then the nominee becomes the bond owner. The nominee could be a legal heir, like a spouse or friend. In cases where the nominee is not the legal heir, he/she is obliged to transfer the bond to the legal heir of the bond owner. If there’s no nominee for the investment, a legal heir can transfer the bond ownership to himself/herself by presenting required documents like a death certificate. It is strongly recommended to nominate someone especially for long term bonds to save your family troubles during the ownership transfer.
Yes, you can lose money by investing in bonds in two situations. First, if the bond issuer defaults on interest or principal payments. Second, you redeem the bond before maturity when market interest rates have increased. Bond price and market interest rate are inversely related so the price of existing bonds fall when market interest rates go up.
The government of India issued bonds are the safest to buy. State bonds or SDLs (State Development Loans) are considered almost as safe as central GoI bonds. While government bonds are safest from the ‘credit default’ perspective, they are subject to risks associated with interest rate like other (corporate) bonds.
Most bonds are listed and can be sold on the exchange (NSE or BSE) anytime if buyers are available, but the redemption process is not straightforward and may require a broker's service.
There is no penalty for selling bonds before maturity in most cases. However, there may be implications like losing money or paying higher taxes when you sell bonds before maturity. So, investing in bonds and holding them until maturity is generally recommended.