Secondary Market Bond!
Featured Bonds For The Week
- Rating -
- AAA
- Rate of Interest 7.11% - 8.35%
Min. Investment – Rs.997,800
Type of Bond – Corporate
- Rating -
- AAA
- Rate of Interest - 7.68%
Min. Investment – Rs.99,680
Type of Bond – PSU
What is a Secondary Market Bond?
When an investor chooses against holding the bond till maturity, they sell it to another investor in the market who might be interested in it. To buy a bond in a secondary market you need a bank account for transactions, and a DEMAT account to get the bonds deposited.
Classification of Bonds
PSU BONDS
PSU Bonds are medium and long term obligations issued by public sector companies in which the government shareholding is generally greater than 51%.
CORPORATE BONDS
Corporate bonds are debt securities issued with an aim to raise money from investors. They offer higher yields than G-SECS.
TAX FREE BONDS
The income generated by the interest is usually non-taxable when you purchase tax free bonds.
PERPETUAL BONDS
These bonds are issued by entities for investors to earn unremitting interest.
STATE DEVELOPMENT BONDS
SDL are issued by state government in order to meet budget expenses. They are low risk investments.
MARKET LINKED DEBENTURE
Market Linked Debentures are sophisticated debt instruments where the pay-off is linked underlying security .
