#Essential
What are 54EC Bonds or Capital Gain Bonds
What are 54EC Bonds or Capital Gain Bonds 54EC or Capital Gain Bonds are investments in bonds that help you save tax. Capital Gain Bonds have been designed specifically to encourage people to invest in long-term infrastructure projects led by government-owned PSUs and in return offer investors a tax saving mechanism. The name is derived […]
What are Commercial Papers?
Introduction Businesses often find themselves needing quick, short-term funding to keep things running smoothly, whether it’s managing daily operations, buying inventory, or bridging gaps between receivables and payables. In these situations, having immediate access to funds is crucial. One effective tool for meeting these short-term financial needs is commercial paper. In this article, we’ll break […]
What are Corporate Bonds?
Introduction “Cyberstark Industries” was a large corporation that was growing quickly and required additional funding to support its expansion goals. However, the CEO of Cyberstark didn’t want to dilute the ownership of the current shareholders by issuing more stock. Instead, the CEO decided to issue bonds to raise the needed capital. Cyberstark Industries issued Rs.100 million […]
What Are Floating Rate Bonds?
Bonds are debt instruments that loan money to their issuers. It is a type of borrowing where the issuer borrows funds at an interest rate that is either fixed or variable. A government, a bank, or a corporation may issue a bond. Bonds can be issued either at fixed rates or at floating rates. Here, […]
What are Fully Accessible Route (FAR) bonds
Introduction In a landmark development for India’s debt market, on June 28, 2024, JP Morgan added 29 Indian government securities under the FAR program to its highly regarded Emerging Market Bond Index (EMBI). This development is expected to enhance foreign investor participation and attract substantial inflows into the Indian bond market. The decision marks India’s […]
What Are High-Yield Bonds?
Bonds are debt instruments where the issuing entities promise to pay the investor a specific amount of interest over the tenure of the bond and return the principal amount at the end of it. In high yield bonds the interest rates are higher than other fixed income instruments with similar tenure. As the risk factor […]
What are Inflation-Indexed Bonds?
Introduction In our previous blog, the impact of inflation on bond investments, we discussed how inflation can significantly erode the real value of bond investments. Imagine earning 8% interest on a bond, but with inflation running at 4%, your actual gain in purchasing power is only 4%. As a response to this issue, Inflation-Indexed […]
What are Infrastructure Bonds?
Introduction Mumbai’s skyline, with its skyscrapers piercing the clouds, shows ambition and modernization. As the financial capital, the city has seen an infrastructure boom over the past decade. The Trans Harbour Link, Metro, and Coastal Road projects will make the city more interconnected. However, the current infrastructure still doesn’t provide enough relief. Traveling 6 kilometers […]
What Are Listed and Unlisted Bonds?
The idea of a good investment is one that is relatively safe and stable, gives high and regular returns all while allowing you wriggle room to exit in case of emergencies. Nowadays, conventional forms of savings do not ensure financial security and adequate returns. Therefore, you might go for securities like equities all in the […]