Do you take pride as an Informed and aware Investor?
Explore the world of Fixed Income Investment Products - Bonds and Debentures
Well it's time to actively consider investing in bonds, if you haven’t done so yet. Fixed income bonds are more tax-efficient for money management. Bonds are pure debt instruments and they come with obligatory regulations and are entitled by law to pay fixed returns till the maturity date as mentioned in their issue statement.
At RURASH, we provide well researched recommendations on the bond issuing company. As the leading investing company with UHNI and NRI portfolios we make sure that our client portfolios exclusively invest in the bonds that come with AAA – A ratings from the authorized credit rating agencies.
Choose your pick:
- Why save 2% !!
- Corporate Fixed Deposits function as regular fixed deposits but feature higher interest rate
- Corporate Deposits have rating indicating a potentially low risk
- Low risk investments and do not face influence of market forces
- Company FD can be liquidated easily depending on the terms of institution
- Get Monthly/Quarterly/Annual Payout upto 10.25%
- Bonds provide the perfect alternative to people who are looking at earning money at a stable predictable rate.
- Bonds are safer than equity investments and perform better
- Bonds enable you to earn better value from your investment with guaranteed higher fixed returns than fixed deposits
- Your Principal Amount remains safe and you will be able to earn additional interest.
Why Fixed Income Investments?
- Safer Option: Fixed Income Bonds are for individuals who are wary of the stock market and are looking for a safer place to invest their money.
- Low Volatility: If you are among those who don't want to experience a wild crazy trip of the stock market. The ups and downs can be too much. If the stock market volatility disturbs your peace of mind, fixed income investments is your way out. For those who are looking for stable investments, fixed income securities are your best bet.
- Fixed Returns: Unlike equity mutual funds, where the fund house is exposed to the swings of the market, fixed income investments offer consistent returns.
- Diversified Portfolio:Fixed income investments are the best alternative sources of investing. It can also be chosen by an avid investor who is looking to earn secured returns, as well as aiming to diversify his portfolio.
Asirvad Microfinance Limited
Fullerton India Credit Company Ltd
ECL Finance Limited
The South Indian Bank Limited
Key points to consider before investing into Fixed Bonds
- Coupon Rate: The fixed interest that the bond pays annually
- Payment Frequency: The number of times interest is paid to the bondholder- monthly, half-yearly, quarterly or annually
- Maturity Date: The date on which the bond holder returns the principal amount to the bond holder.
- Credit Rating: Safety indicator, ratings which are given to competent authorities called as credit rating agencies like CRISIL, IND Ratings, ICRA. Credit rating agencies evaluate various parameters of the corporate bond.
- Financial Condition: In case of corporate bond there is a possibility of default risk, Financial back up of the company helps access it's position.
- Generates regular cash flow: With the fixed interest coming periodically, it generates regular cash flow irrespective of the market situation.
- Earning Tax free Interest: According to the Income tax act of India, Interest earned over bond or fixed income investments is non-deductible.
- Capital Gain taxation: Capital gains under fixed income securities are taxable, Short term capital gains are taxable as per investors income. while 20% deduction is made in case of long term capital gains.