Invest in the Best Bonds & NCDs in India with Nirmaya Wealth

Strengthen your portfolio with Bonds and Non-Convertible Debentures (NCDs). These fixed-income instruments help balance your risk-return profile, add diversification, and reduce portfolio volatility. If you are looking to invest in Bonds/NCDs, Nirmaya Wealth is your trusted partner for smart and secure investments.

Key Features of Bonds

Prevailing Interest Rates:
Bond prices generally move inversely with interest rates. When interest rates fall, bond prices rise, and vice versa. Savvy investors can buy bonds when yields are high, expecting price appreciation when yields drop.

Age of the Bond:
Longer-term bonds are more sensitive to interest rate changes. In a rising interest rate environment, long-term bond prices may decline more than short- or intermediate-term bonds.

Credit Quality:
The issuer’s credit rating impacts bond yields and prices. Bonds with lower credit ratings offer higher yields to compensate for higher risk. Always evaluate the creditworthiness of the issuer before investing.

How Bonds Work

There are two primary ways to buy bonds in India:

1. Primary Market: Directly from the issuer.
2. Secondary Market: Through exchanges where existing bonds are traded.

Investors must consider:

• Market Price: The current price at which a bond can be bought or sold.
• Yield: The annual return from the bond, calculated by dividing the coupon interest by the market price.

Bond prices rise when yields fall, and fall when yields rise. For example, a bond issued at ₹100 with a 10% coupon may be sold at ₹101 after a year, giving a yield of 9.9% and an effective return of 11%.

Best Bonds to Buy in India

Investors can explore various bond types:

• Tax-Free Bonds: Interest earned is tax-free.
• Capital Gain Bonds / 54EC Bonds: Offer capital gains tax exemptions.
• Corporate Bonds: Issued by companies; may offer higher returns.
• GOI Bonds: Government-backed securities.
• NCDs: Can be Secured (backed by assets) or Unsecured (based on issuer creditworthiness).

Advantages of Bonds

• Fixed Returns: Earn regular interest payments, with principal returned at maturity.
• Lower Volatility: Bonds are generally more stable and less risky than stocks.
• Transparent Ratings: Credit rating agencies assess bond quality, providing reassurance on safety.

Types of Bonds to Consider:

• Corporate Bonds
• Non-Convertible Debentures (NCDs)
• RBI Floating Rate Savings Bonds
• Sovereign Gold Bonds

Invest with Nirmaya Wealth – How It Works

1. Create an account on Nirmaya Wealth with your basic details.
2. On your portfolio page, click Buy New.
3. Select the Bond scheme you want to invest in.
4. A relationship manager will guide you through the investment process.

Frequently Asked Questions (FAQs)

1. Is Bond a Good Investment?
Yes. Bonds offer fixed returns, lower volatility, and provide an exit option via the secondary market.

2. Who Can Invest in Bonds?
Any Indian resident with the required documents can invest.

3. Which Bonds Are Safest in India?
Government securities (G-Secs) and AAA-rated bonds are considered the safest.

4. Can I Withdraw Bonds?
Certain bonds traded on the secondary market can be sold, depending on liquidity.