What this is
Bonds are debt instruments offering predictable income with a defined maturity. They sit at the foundation of every well-diversified portfolio — smoothing returns during equity drawdowns and funding near-term goals. We help you build the fixed-income side of your portfolio across the full risk spectrum.
- Government Securities (G-Secs) — zero default risk, sovereign-backed
- State Development Loans (SDLs) — small yield pickup over G-Secs
- Corporate bonds — credit-rated, higher yields, varied tenures
- Tax-free Bonds — interest exempt from income tax (great for high tax brackets)
- Sovereign Gold Bonds — gold exposure with 2.5% p.a. interest
- Ladder strategies — staggered maturities for predictable cashflows
FAQ
- How do bond returns compare to FDs?
- G-Secs and high-quality corporate bonds typically yield 1-2% more than equivalent-tenure FDs. Tax-free bonds can give a post-tax yield equivalent to 9-10%+ FD rates for investors in the highest tax slab.
- Are bonds risk-free?
- G-Secs are essentially default risk-free (the Indian government can print rupees if needed). All bonds carry interest rate risk — when rates rise, existing bond prices fall. Hold-to-maturity avoids this, but mark-to-market matters if you may need to sell early.
- What's a Sovereign Gold Bond?
- Issued by RBI on behalf of the Government of India. You get gold exposure (price-linked to grams of 999 gold) PLUS 2.5% annual interest, with capital gains on maturity exempt from tax. Issued in tranches — we keep clients informed of upcoming series.
- How are bond gains taxed?
- Interest is taxed at slab rate (except tax-free bonds). Capital gains on sale before maturity: STCG at slab rate if held <1 year, LTCG at 10% without indexation if ≥1 year (listed bonds). Tax-free bonds: zero tax on interest.