Corporate Bonds are financial instruments used by companies to raise debt from investors. The capital generated serves various business objectives, including initiating new projects, expanding existing ventures, or covering working capital requirements.
Why Invest In Corporate Bonds?
Investors who purchase corporate bonds are essentially lending money to the issuing companies. In return, these companies commit to:
Making periodic interest payments.
Repaying the principal amount upon maturity.
Benefits of Investing in Corporate Bonds
*Stable Returns: Corporate bonds provide investors with consistent, inflation-beating returns.
*Credibility: These bonds are rated by reputable credit agencies like CRISIL, ICRA, Fitch Ratings, ensuring strong issuer companies and reducing default risk.
*Predictable Income: Exchange-listed corporate bonds offer a fixed interest rate, appealing to those seeking a dependable income stream.
*Diverse Opportunities: Investors can choose from a variety of corporate bonds with different tenures, aligning with their investment goals.
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