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Fixed income instruments with returns as high as 12%
Issued by top-rated companies
Flexible tenures of 6-60 months
Issued by top rated companies with high CRISIL ratings
Lower risk than equity markets, higher returns than FD of up to 12%
Flexible tenures of 6-36 months
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Start LearningBonds fall into the category of low-risk securities just like Fixed Deposits. Below are some of the risks associated with investing in bonds:
Bonds are 100% tradable securities. This means that there is no lock-in on your bond investment. If you want to sell them before maturity, you can do so in the secondary market at market price(market price may vary from par-value).
Bond ratings are evaluations of the creditworthiness of a bond. Higher ratings mean lower risk and greater creditworthiness. Ratings are expressed as letter grades or alphanumeric codes, with AAA being the highest rating. Investors use these ratings to assess the risk and potential returns of a bond investment.
These ratings are assigned by rating agencies and indicate the level of risk associated with the bond. There are a total of seven credit agencies in India viz, CRISIL, CARE, ICRA, SMREA, Brickwork Rating, India Rating and Research Pvt.
To invest in bonds, you need:
The yield to maturity is the total return expected from a bond if it is held to maturity. In other words, it is the internal rate of return (IRR) of a bond if the investor holds the bond until maturity, and if all payments are made as per schedule.