Bonds & Debentures / RBI Bonds
Bonds are fixed-income securities where you lend money to a company, government, or organization for a set period. In return, you earn regular interest (coupon payments) and get your principal back at maturity.
- Bonds pay regular interest (usually semi-annual or annual), providing a reliable income stream, ideal for retirees or conservative investors.
- If held till maturity, bonds return the original investment (principal), making them safer for those seeking to protect capital.
- Bonds are generally less volatile than equity markets.
RBI Bonds (issued by the Reserve Bank of India ) are government-backed investment instruments that offer safe and fixed returns. They are ideal for conservative investors looking for security over high returns.
