Things to know before investing directly in bonds3 min read 01 May 2023, 11:49 PM IST
You need to consider factors such as credit rating, residual maturity and taxation
There are many categories of bonds that people can invest in. The first and safest of these is government bonds or securities (G-Secs). Corporate bonds include tax-free bonds issued by certain public sector units earlier, the usual plain vanilla bonds, perpetual bonds issued by banks called additional tier I (AT1) as well as non-bank plain vanilla perpetual bonds. Another variety—market-linked debentures (MLDs)—has become less popular now, post the tax changes in the Union budget.
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