Different Bonds in India

Different types of bonds Indian Investors can invest in.

  1. Government Bonds:
    • Treasury Bills (T-Bills)
    • Government Securities
    • Savings Bonds
  2. Corporate Bonds:
    • Debentures
    • Non-Convertible Debentures (NCDs)
    • Convertible Debentures
    • Perpetual Bonds
    • Secured and Unsecured Corporate Bonds
  3. Municipal Bonds:
    • Municipal Corporation Bonds
    • Panchayat Bonds
  4. Public Sector Undertaking (PSU) Bonds:
    • Bonds issued by government-owned companies and organizations like NHAI, PFC, and REC.
  5. Tax-Free Bonds:
    • Bonds issued by government-backed entities that offer tax-free interest income.
  6. RBI Floating Rate Savings Bond:
    • Government bonds with variable interest rates linked to the prevailing rate on National Savings Certificates.
  7. Inflation-Indexed Bonds:
    • Government bonds that provide returns linked to inflation rates, such as the Inflation-Indexed National Savings Securities (IINSS).
  8. Sovereign Gold Bonds:
    • Government securities denominated in grams of gold, providing an opportunity to invest in gold without physical possession.
  9. Fixed Deposit Receipts (FDRs):
    • Issued by banks and financial institutions, offering fixed interest rates for various tenures.
  10. Corporate Fixed Deposits:
    • Fixed deposit schemes offered by companies, providing higher interest rates compared to regular bank fixed deposits.
  11. Non-Convertible Redeemable Preference Shares (NCRPS):
    • These are a form of hybrid securities that combine characteristics of both equity and debt instruments.
  12. Step-Up Bonds:
    • Bonds with an increasing interest rate over time.
  13. Capital Gains Bonds:
    • These bonds are issued to provide capital gains tax exemption under Section 54EC of the Income Tax Act.
  14. Exchange-Traded Funds (ETFs):
    • While not traditional bonds, ETFs can include bond-based funds that trade on stock exchanges and provide exposure to various bond markets.
  15. Sukanya Samriddhi Yojana Bonds:
    • Government-backed savings bonds specifically designed for the welfare of the girl child.
  16. Employee Provident Fund (EPF) Bonds:
    • Bonds issued by the Employees’ Provident Fund Organization, providing retirement benefits to employees.
  17. Post Office Monthly Income Scheme (POMIS):
    • Investment in fixed-income instruments offered by the Indian Post Office.
  18. Kisan Vikas Patra (KVP):
    • A small savings certificate program offered by the Indian government.
  19. National Pension System (NPS) Bonds:
    • Part of the NPS scheme, where contributions are invested in a mix of government and corporate bonds.
  20. RBI Retail Direct Bonds:
    • Retail investors can directly invest in government bonds through the RBI Retail Direct platform.