Bonds
Basic course on Bonds

Here we will talk about-

-What is bond?
-Different type of bonds
-Risk involved in bonds investment
-How to invest in bonds?
-Calculation for returns from bonds
-Tax related queries for gains from bonds

BONDS- TIPS
- Generally, bonds give 0.5% -1% more than FDs [Ex: Before budget- 2021, Bharat Bond gave 6.9% yield 1% more than FDs.]
- If you are an HNI, FDs after tax hardly gives 3% return but on the other hand if we put money in debt instrument for more than 3 years than you get indexation benefit.
- You can show profit from debt as capital-gains.
- Moreover as a trader, you can pledge bonds and the credit you will get can be used for trading activities.

BONDS- TIPS
-Covered Bonds- as we have read in the above slides that some debt mutual fund have higher risk than fd and give lower returns. So, to avoid defaults we could invest in covered bonds where investors money is covered by gold, real estate or some other asset.
- Min. requirement for investment in covered bonds is 10lakh but some new companies are also offering at lesser min. limits.