Corporate Bonds
Corporate Bonds
Corporate bonds are a type of capital market debt security that is issued by a company and sold to investors. They may be rated by the major credit rating agencies, such as Moody’s or Standard & Poor’s. Corporate bonds may be interest bearing or non-interest bearing (zero coupon). They may also be convertible into stock of the issuer corporation or in some cases traded on margin with an agreement between the holder and an agent called a bond broker or market maker. They are generally classified as investment grade if they have investment-grade ratings from one or more major credit rating agencies.
Mutual Fund Investment Philosophy
Government Securities Bonds
The Government Securities Bond is a debt instrument that is issued by the central or the state government of India.
Corporate Bonds
Corporate bonds are the bonds that are issued by the companies to borrow money from investors for a fixed period and gives them a specific interest rate throughout the tenure.
Convertible Bonds
A convertible bond is a type of bond which offers both of the features of debt and equity but not at the same time.
Zero Coupon Bonds
This bond is also referred to as the pure discount bonds in which the money invested does not offer regular interest rate until till the bond get mature.
Inflation Linked Bonds
This type of bond provides protection against inflation and is made for cutting out the inflation risk of an investment that is mainly issued by the government.
RBI Bonds
The floating rate saving bonds 2020 (FRSB) which is issued by the RBI is also referred to as RBI Taxable bonds with a tenure of 7 years, and the interest rate keeps floating during the tenure.
Sovereign Gold Bonds
This type of bond is issued by the central government of India for those investors who want to invest in gold but do not want to keep in physical form with them.