WHAT IS WEALTH?
Invest in a company with a good reputation and a good credit rating (given by industry-recognized rating agencies like CRISIL, ICRA)
Check duration of bond and invest as per your time horizon
3) Tax implication:
Two types of bonds are available.
- a) Taxable and
- b) Tax free Bonds
REASON TO INVEST?
- Better returns than F.D and postal schemes
- Potential of capital gain
- Regular Fixed Income
- Traded in secondary Market
WAYS TO INVEST?
- Primary market (IPO) (New Bonds)
- Secondary market (Ongoing Inventory)
- Interest will be added in your income in case of taxable bonds
- Interest is tax free in case of tax free bonds
- Capital Gain: If you sell Bonds in Secondary market at higher price, short term or long term capital gain will be applicable.