A bond is a sort of fastened revenue safety the place the investor lends cash to an organization or authorities for a hard and fast time frame, in return for normal curiosity funds and the compensation of the principal quantity at maturity. Bonds are thought of much less dangerous than shares, however in addition they supply decrease potential returns.
There are various several types of bonds obtainable in India, together with authorities bonds, company bonds, and municipal bonds. Every sort of bond has its personal distinctive dangers and returns, so it is very important do your analysis earlier than investing in any bond.