Bonds
Bonds are evidence of long-term debt, by which the bond issuer is obliged to pay interest when due and repay the principal at maturity, as specified on the face of the bond certificate. The right of the holder is specified in the bond indenture, which contains the legal terms and conditions under which the bonds were issued. Bonds are a financial mechanism to guarantee or secure a financial risk. Bonds are issued by governments and companies to raise money and are obliged to pay interest on the capital invested by the investors. This financial instrument asks for advance investment and then pays a reoccurring amount over the life of the bond. For the capital invested, the bondholder receives reoccurring payments in form of a coupon, which are generally fixed. On the maturity of the bond, the bondholder receives the capital invested. Bonds’ prices fluctuate because of the fixed coupon payment which generally earns a higher yield. Bonds are of two types:
- Registered Bond: A bond that is recorded on the books of the issuer by the trustee, with interest paid by mail to the holder of record.
- Bearer Bond: A negotiable loan instrument payable to its holder by the issuer according to preset conditions. The owner must safeguard bearer bonds to prevent loss; interest is usually paid by coupon redemptions.
Top 10 Best Investment Options in India 2023
The term ‘Finance’, which seems to be complicated to many youngsters is actually very easy to understand. It is nothing but a way someone manages his/her money in such a manner that all the expenditures are met without actually draining out the whole amount. Financial experts technically define Finance as a system of creating, managing, and investing money with a motive to make the best use of the available resources.
It’s important for oneself to set future goals. Finance is a lifeblood of a modern economy and therefore, to fulfill any goal, a person needs money. This fact of life bounds you to set your goals in terms of finance. It is, therefore, important to have some future financial goals to accelerate the saving and channelising the same to earn out of it.
Investment is pooling off money to gain more benefits after a specific period. It is a technique to increase the capital employed after a specific time. Investment is the placement of capital in the expectation of deriving income or profit from its use or appreciation.
These are the Top 10 Best Investment Opportunities
1. Real Estate Property
2. Public Provident Fund(PPF)
3. Mutual Fund
4. Stocks/Equities
5. Bonds
6. Certificate of Deposits
7. National Pension Scheme(NPS)
8. Money Market Accounts
9. National Saving Certificate
10. Post Office Monthly Saving Scheme