Archive · 24 Aug 2025
Bonds as an Investment: Why Now is a Good Time
Imagine you're lending money.
Fixed deposits are a basic option, but bonds let you lend directly to companies or the government.
Bonds can offer better returns than bank deposits.
It's important to know how much interest a bond pays (coupon), what you'll actually earn if you hold it to the end (YTM), and how risky it is (credit rating).
When interest rates go down, the value of existing bonds goes up, so now could be a good time to invest.
Fixed income investments, including bonds, are essential for a balanced portfolio.
Individual bonds offer potentially higher returns and greater control than traditional FDs.
Investing in bonds requires understanding concepts like coupon, YTM, and credit ratings.
Bond prices move inversely to interest rates, presenting opportunities during rate cycles.
With India in a potential rate-cutting cycle, it is considered a favorable time for bond investments.
- Who
- Vishal Goenka of IndiaBonds and Neil Borate.
- What
- The benefits of investing in bonds and other fixed income instruments.
- When
- Current market conditions are considered favorable for bond investments.
- Where
- India
- Why
- To encourage investors to explore fixed income options beyond traditional fixed deposits.
- Investment Type
- Fixed Income (Bonds)
- Key Concept
- Yield to Maturity (YTM)
- Risk Assessment
- Credit Ratings
- Market Influence
- Interest Rates
