The bond issue has not been constructed keeping retail investors' needs and behaviours in mind
The life of a long-term investor seeking fixed returns is not easy. Unwilling to expose her money to the risk of the stock market either directly or through mutual funds, this investor finds her choice restricted to fixed deposits or insurance-linked investment products. Both of these are disastrous in terms of real returns, that is, inflation-adjusted returns. Bank fixed deposits today give 8.5-9.0% interest for a 5-year tenor. After accounting for consumer inflation of 10% and a tax of 30% on the interest, the real return is negative. Look at money-back or endowment policies that promise a tax-free return of 4% or 5%, the result is the same—you lose money to inflation by holding such products.