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Corporate Bonds

Corporate bonds are a significant component of the financial market, offering investors a reliable fixed-income instrument while providing corporations with an effective means of raising capital. These debt securities are issued by companies to finance operations, expand businesses, or manage existing liabilities. 

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How We Help You Invest in Corporate Bonds?

Direct Investment

We provide access to corporate bonds from both primary and secondary markets, ensuring a smooth and secure investment process with expert guidance.

Debt Mutual Funds

Our platform helps you invest in mutual funds focused on corporate bonds, reducing individual risk while ensuring steady returns.

Bond ETFs & Platforms

We offer seamless access to bond ETFs and online platforms, allowing you to trade corporate bonds effortlessly with transparency and flexibility

Corporate Bonds vs. Other Investment Options

Compared to stocks, corporate bonds provide a more predictable income stream and lower volatility. However, they typically offer lower returns than equities over the long term. When compared to government bonds, corporate bonds generally provide higher yields due to the increased risk associated with corporate debt. Below is a comparative table:

Feature Corporate Bonds Government Bonds Stocks
Risk Level Moderate Low High
Return Potential Moderate Low High
Income Stability High High Variable
Ownership No No Yes
Liquidity Moderate to High High High

Frequently asked questions

Corporate bonds are fixed-income securities issued by companies to raise funds. Investors lend money to the company in exchange for periodic interest payments and principal repayment at maturity.

Unlike stocks, which represent ownership in a company, corporate bonds are loans to the company. Bonds offer fixed interest payments and are generally less volatile than stocks.

Corporate bonds are relatively safer than stocks, but risk depends on the bond’s credit rating. Higher-rated bonds (AAA, AA) are more secure, while lower-rated bonds may offer higher returns with additional risk.

You can invest in corporate bonds through:

  • Direct purchases from the primary or secondary market.
  • Debt mutual funds focused on corporate bonds.
  • Bond ETFs or online investment platforms.

Interest earned is taxable as per your income slab. Capital gains tax applies based on the holding period:

  • Short-term gains (held for less than 3 years) are taxed as per income slab.
  • Long-term gains (held for more than 3 years) are taxed at 20% with indexation benefits.

 

Corporate bonds are ideal for:

  • Investors seeking stable income with lower risk.
  • Retirees & conservative investors looking for predictable returns.
  • High-net-worth individuals (HNIs) who want to balance portfolio risk.