Simplifying NRI Investments With Easy Methods Create Greater Wealth For Your Future Goals.
Some want to have good returns, and some want to diversify their global portfolio of investment. Whatever the case be, investment in Indian bonds is always the right choice for NRIs.
IIB promises you to provide multiple Bonds as per the individual's requirement, which will give you a steady cash flow, higher return than traditional investment avenues. Our experts are here to assist you in selecting and guiding in investing the different Bonds. All you need to do is give us a ring or write an email. We assure you, our experience team will guide with the best.
Looking for the best investment options for NRI? Then IIB is here for you. We offer various NRI investment opportunities in Bonds.
NRIs can earn interest income at attractive rates by investing in different bonds which are having better return than their investment return in their domicile country or any NRE Fixed Deposit in India.
Our expert investment advisors would be happy to provide you with one-on-one personal assistance for your queries.
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With a careful and secure transaction, the government securities are safe and risk-free, which is a prominent benefit.
Here is a rundown of the key advantages and core benefits offered if an individual invests in the Bonds.
The coupon earned or principal may be used as per the norms applicable.
The cash flow is known to the investor so, it is easier to meet the needs of domestic needs for their relatives or for the self needs. Moreover, the returns are higher in comparison to traditional investment in NRE FD.
The bond is issued in Indian Currency so there is no exchange rate fluctuation.
Investment in Bonds offer higher returns than traditional investment like Fixed Deposit.
There are multiple types of bonds in which NRI can invest in. For the Government securities there are some selected securities in which they can invest directly. While they can invest in the Corporate Bond through secondary market.
A Government Security (G-Sec) is a tradable instrument issued by the Central Government or the State Governments. It acknowledges the Government's debt obligation. In India, the Central Government issues both, treasury bills and bonds or dated securities.
State Governments also raise loans from the market which are called SDLs. SDLs are dated securities issued through normal auction similar to the auctions conducted for dated securities issued by the Central Government. Interest is serviced at half-yearly intervals and the principal is repaid on the maturity date.
Different Corporates/NBFCs/PSUs issue their Bonds for different maturities. These Bonds are duly rated by different rating agencies. These ratings give sufficient information and about the health of the issuing bonds and relevant information about the companies.
For multiple purposes, different state government runed Corporations also raise multiple bonds which are guaranteed by the respective state governments. Generally, these bonds carry higher rate of interest than others.
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We provide financial planning, advice and resources that investors need. As the financial industry evolves and customer needs become more complex, we have and continue to reinvent, innovate and transform ourselves to be ready for the financial landscape of tomorrow.
Our team is led by Bhavanand Kumar Mishra who has outstanding expertise in the Bond Market, Forex. He is M.B.A, certified associate of Indian Institute of Bankers, certified treasury professional holder from IIBF, Mumbai. He has worked as Chief Dealer in almost all asset classes especially in the Fixed Income in the treasury, with twenty plus years of expertise including overseas experience at London & Birmingham in U.K. in the Punjab National Bank, which is the second largest PSU Bank in India. Mr. Mishra is supported by a team of young professionals.
The size of Indian Bond market is increasing substantially year on year basis and so the opportunity also multiplies. Indian Bond market consists of Central Government securities (G-Secs), State Development Loans (SDLs), Treasury Bills, these securities are also called as Sovereign assets classes. Particularly State Development Loans is a higher yield asset class and suitable for the retail investors. State Development Loans (SDLs) maintains 25 to 50 bps spread from the G-Secs in the respective maturities however, these spread is not sacrosanct and may vary depends on the multiple variables.
As far as Corporate Bonds are concerned, Public Sector Undertakings like PFC, REC, NABARD, NHAI, etc, Private Companies, NBFC are issuing multiple bonds round the year having different maturities. These corporate bonds carry substantial spread from the G-Sec.
Generally, before investing in Bank/Corporate Fixed Deposit, depositors compares the rate of different bank's offered rate of interest and then decides where to invest in. Generally, investors don't give importance to the fact that their deposits per bank is secured only up to INR 5 Lakh. Further, if the individual left with additional surplus money, he/she chooses to invest in the Debt MFs. In the debt MFs, there are multiple entry or/and exit load and other charges which makes their return less profitable than their direct investment in the bond. At the end of day, Fund Managers of the Debt MFs invest in the bonds only which are available in the market.
Summary - The diversification of the investment portfolio is the key to manage hard earned savings. While we don't negate the importance of Bank's Fixed Deposit, but at the same time we also don't appreciate investing all the money either in the Bank/Corporate FDs or in the MFs. In the modern era, when all the information are widely and easily available, we must change the investing habits a little bit to earn more without putting any extra effort. Interestingly, investing in the bond is quite easier than our believe as everything can be done sitting at the home.
Bonds are issued by organizations generally for a period of more than one year to raise money by borrowing. Following are the types of bonds:
In general, Bonds and Debentures are interchangeably used in conversation but they have their own definition and characteristics related to them.
Here is the list of popular Bonds and Debentures available in India.