Government Bond
Fixed maturity, helping investor to invest and secure their future
A government bond is a debt instrument issued by India’s central and state governments. These bonds are issued when the issuing body (Central or State governments) is facing a liquidity crisis and needs funds for infrastructure development purposes.
Government bond in India is a contract between the issuer and the lender, whereby the issuer promises interest earnings on the face value of bonds owned by investors as well as repayment of the principal value at a specified period.
THIS IS CUSTOM HEADING ELEMENT
Sovereign Guarantee
Our Government Bonds celebrates a premium status with respect to the stability of funds and promise of assured returns. As G-Secs are a type of a formal declaration of Government’s debt obligation, it implies the issuing governmental body’s liability to repay as per the stipulated terms.
Adjusted Inflation
Balances folded in Inflation-Indexed Bonds are adjusted against the increasing average price level. Other than that, the principal amount invested in Capital Indexed Bonds is also attuned against inflation.
Regular Income
As per the regulations of RBI, interest earnings ensued on Government Bonds are supposed to be paid every 6 months to such debt holders. We provide investors with a golden chance to earn regular income by investing their funds.
Continuous Support
We understand the urgencies of help in times of distress. Our in-house team blesses you with round the clock support to aid you with a hassle-free experience and lend you a reliable shoulder in times of need.
TYPES OF GOVERNMENT BONDS IN INDIA
Fixed-Rate Bonds
Government bonds of this nature come with a static & fixed rate of interest which remains persistent throughout the tenure of investment irrespective of fluctuating market figures. The coupon on a Government Bond is mentioned in nomenclature. For instance, 7% GOI 2021 means &% is the rate of interest on face value, GOI is the issuer and 2021 is the maturity year.
Floating Rate Bond (FRB)
As the name itself suggests, FRBs are subject to periodic changes in the rate of returns. The difference in rates is undertaken at intervals which are declared beforehand during the issuance of bonds. For instance, an FRB could have a pre-announced interval of 6 months; which connotes interest rates on it would re-set every six months throughout the tenure.
Inflation-Indexed Bond (IIB)
Inflation-Indexed Bond is a unique financial instrument, wherein the principal, as well as the interest earned on such bond, is given with inflation. Mainly issued for retail investors, these bonds are indexed as per the Wholesale Price Index (WPI) or Consumer Price Index (CPI). Such IIBs ensure genuine returns accumulated with such investments remain constant, thereby allowing investors to protect their portfolio against inflation rates.
Zero-Coupon Bond
As the name itself suggests, Zero-Coupon Bonds do not earn any interest. Earnings or savings from Zero-Coupon Bonds arise from the difference in issuance price (at a discount) and redemption value (at par). This type of bond is not issued through auctions but rather created from existing securities.
