Bonds

As a part of portfolio mix and need based products, we also offer Govt. of India Bond (GOI), 54EC Capital Gain Bonds issued by Rural Electrification Corporation of India(REC), National Highway Authority of India (NHAI), NCD, Primary and Secondary Market Bonds.

Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debtholders, or creditors, of the issuer. Bonds are just one of many different asset classes that investors can use to build a well-rounded portfolio.

Characteristics of Bond

• Face value is the money amount the bond will be worth at its maturity, and is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium $1,090 and another purchases the same bond at a discount $980. When the bond matures, both investors will receive the $1,000 face value of the bond.
• Coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage. For example, a 5% coupon rate means that bondholders will receive 5% x $1000 face value = $50 every year.
• Coupon dates are the dates on which the bond issuer will make interest payments. Typical intervals are annual or semi-annual coupon payments.
• Maturity date is the date on which the bond will mature and the bond issuer will pay the bond holder the face value of the bond.
• Issue price is the price at which the bond issuer originally sells the bonds.