Bonds are fixed-income instruments where you lend money to the issuer (government, corporations, etc.) in return for periodic interest payments and the repayment of the principal amount at maturity. They are an alternative to traditional investment options, offering predictable returns with varying levels of risk.

Bonds provide stable returns, help diversify your portfolio, offer tax-saving options (in some cases), and ensure predictable income streams. They are ideal for risk-averse investors.

The minimum investment amount varies by bond type. The minimum investment amount for Government Securities is Rs.100 and for Corporate Bonds it is Rs.1000. You can typically start investing with as little as ₹10,000.

Yes, bonds in India are regulated by the Securities and Exchange Board of India (SEBI), ensuring investor protection and transparency in the bond market.

Yes, a demat account is what holds financial securities digitally and enables one to trade shares/bonds in the market. Bondbazaar is currently maintained by Central Depository Services Limited (CDSL) and a demat account with Bondbazaar is mandatory to start investing.

The bond market offers a wide range of bonds, including government securities (G-Secs), corporate bonds, public sector bonds, tax-free bonds and municipal bonds, catering to different risk and return preferences.

Consider factors like your investment horizon, risk tolerance, desired returns and whether you seek taxable or tax-free income. A diversified portfolio with different bond types can help achieve stability and growth.

Bonds are generally safer than equities but come with risks like:
1. Credit Risk: The issuer may default on payments.
2. Interest Rate Risk: Bond prices may fluctuate due to changes in interest rates.
3. Liquidity Risk: You may not always find buyers if you need to sell before maturity.

Yes, you can sell most bonds before maturity in the secondary market. However, the selling price will depend on prevailing market conditions.

Interest payments vary based on the bond type—some pay monthly, quarterly, annually, or only at maturity. This information is specified in the bond offer document.

Bonds are rated by credit rating agencies like CRISIL, ICRA, and CARE. Ratings like AAA, AA, or A+ signify the creditworthiness of the issuer, with AAA being the safest. These ratings help you assess the risk level of the bonds.

Interest payments are credited directly to your registered bank account as per the bond’s payment schedule.

Upon maturity, the issuer will repay the principal amount to your registered bank account, along with the final interest payment (if applicable).

Yes, the interest income earned is taxable as per your income tax slab. However, some bonds, like tax-free bonds, offer interest income exempted from tax.

Yes, bonds can be transferred to another person. The process typically involves documentation, and the transfer must be registered with the issuer or registrar.

You can track your investments on the Bondbazaar’s platform. All relevant details like interest payments, maturity dates, and portfolio performance will be available.