Yes, you need a Demat account to buy bonds. You can use your existing demat account. If you don’t have a Demat account, experts at VNN Wealth can help you create one and plan your investments.
Invest In Bonds
Unlock stable returns with access to a wide range of bonds, including government bonds, corporate bonds, sovereign gold bonds, and municipal bonds. Bonds offer a reliable source of income with predetermined interest payments and maturity dates, making them an essential component of any well-rounded investment strategy. Whether you're seeking steady income or capital preservation, bonds provide a low-risk option to achieve your financial objectives.
Invest In A Range Of Bonds
Bonds are fixed-income securities issued by Government, private or public sector companies, banks, or NBFCs.
Offers superior returns than FDs with similar or lesser risk exposure.
Generates a steady stream
of income via coupon/interest payouts.
Start Investing in Bonds
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Categories Of Bonds In India
Benefits
Low Initial Investment
You can buy bonds of face value as low as INR. 1,000 and can increase the investment amount by the multiples of the face value.
High Liquidity
After the initial offering, most bonds are traded in the market and offer high liquidity as you can buy/sell them as per your preferences.
Stable Income and Capital Gains
Bonds deliver periodic payouts as per the coupon rate, offering a stable income. You can also earn capital gains by selling the bond at a higher price.
Superior Returns than FDs
Bonds may deliver an additional 1-2% return compared to FDs with similar or lesser risk exposure and tenure.
Factors to Consider Before Investing in Bonds
Who Should Invest in Bonds?
Bonds are ideal for investors seeking a steady source of income
from their investments.
As bonds are less riskier than stocks, investors can consider bonds
to introduce stability and diversification in their portfolios.
Investors looking to lock-in a high-interest rate on their investment
for 10 years can buy bonds.
Investors seeking tax benefits can look into zero-tax bonds and
54EC bonds.
Taxation
Interest Income: The interest you earn on bonds will be taxed according to your income tax slab. (Except for tax-free bonds, where the interest you earn is exempt from tax.)
Capital Gains: If you sell a bond before it matures, you will be subject to capital gains tax.
- Listed Bonds: Short-Term Capital Gains: Bonds sold within 12 months of purchase will be taxed at your income tax slab rate. Long-Term Capital Gains: Bonds held for more than 12 months before selling will attract a tax rate of 10% without indexation.
- Unlisted Bonds: Short-Term Capital Gains: Unlisted bonds sold within 36 months of purchase will be taxed as per your income tax slab. Long-Term Capital Gains: Unlisted bonds held for more than 36 months will attract 20% tax without indexation.
