WHAT IS WEALTH?

1) Creditability:

Invest in a company with a good reputation and a good credit rating (given by industry-recognized rating agencies like CRISIL, ICRA)


2) Duration:

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)

TAX IMPLICATION

 - 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.