Bonds & NCDs
Invest in bonds and NCDs for stable, predictable returns.
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Talk to an experienced advisor about bonds & ncds.
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What is Bonds & NCDs?
Bonds and Non-Convertible Debentures (NCDs) are fixed-income instruments that offer investors regular interest (coupon) payments and return of principal at maturity. They occupy an important position in a balanced portfolio — providing predictable income and lower volatility than equities while offering better post-tax returns than FDs in many cases. The Indian bond market offers a range of options: Government Securities (G-Secs) and State Development Loans (SDLs) backed by sovereign guarantee, PSU bonds from entities like NABARD, REC, and PFC that offer AAA ratings with tax benefits in some cases, and corporate bonds and NCDs from private companies at higher yields. At Right Assets Management, our advisors help India-based investors access the right bonds and NCD opportunities for their fixed-income allocation. We analyse credit ratings (CRISIL, ICRA, CARE), compare yields, evaluate call and put options in callable bonds, and assess the issuer's financial strength before making any recommendation. With RBI policy rates being a significant driver of bond prices, our advisors also guide you on duration management — helping you avoid the trap of locking into long-duration bonds at unfavourable rate cycles.
Who Is This For?
- Conservative investors wanting regular income from coupon payments with better yields than bank FDs
- HNI investors building a diversified fixed-income portfolio as a counterweight to equity exposure
- Senior citizens seeking predictable quarterly or annual income without market risk
- Investors nearing retirement wanting to shift from equity to stable income-generating fixed-income instruments
- Individuals wanting sovereign safety through G-Secs and PSU bonds with RBI-guaranteed returns
- Sophisticated investors seeking higher yields from AA/AA+ rated corporate NCDs within their risk tolerance
How We Help — Step by Step
Fixed-Income Allocation Assessment
We assess the appropriate allocation to bonds and NCDs within your overall portfolio based on your income needs, risk profile, and investment horizon.
Instrument Selection
We identify the right bond categories — G-Secs, PSU bonds, corporate bonds, or NCDs — based on your required yield, credit risk tolerance, and tenure preference.
Credit Analysis
For corporate bonds and NCDs, we review credit ratings, issuer financials, sector outlook, and past debt repayment history to assess default risk before recommending any instrument.
Yield & Duration Analysis
We calculate and compare yield-to-maturity (YTM) across instruments, assess duration risk (interest rate sensitivity), and recommend bonds appropriate for the current rate environment.
Account & Platform Setup
We assist with setting up the necessary Demat account and bond investment platform (RBI Retail Direct for G-Secs, or broker platforms for corporate bonds and NCDs) if not already in place.
Investment Execution
We guide you through the investment process — primary market NCD applications or secondary market bond purchases — ensuring correct execution at fair prices.
Portfolio Monitoring & Maturity Management
We monitor your bond portfolio for any credit events, rating downgrades, or corporate actions, and advise on reinvestment strategy as instruments mature.
Why Choose Right Assets for Bonds & NCDs?
- Earn regular coupon income from bonds while preserving capital — ideal for income-seeking investors
- Diversify beyond FDs into higher-yielding instruments without taking on equity market risk
- Access government-backed G-Secs and PSU bonds with sovereign or quasi-sovereign safety
- Benefit from inflation-linked returns through instruments like RBI Floating Rate Bonds linked to NSC rates
- Receive independent credit analysis before investing — we identify risks that marketing material may not highlight
- Understand yield-to-maturity, duration, and interest rate risk in simple terms before committing funds
- Build a laddered bond portfolio for regular maturity proceeds and reinvestment flexibility
Documents Required
Frequently Asked Questions
What is the difference between a bond and an NCD?
Both are debt instruments issued by entities to raise funds, on which they pay regular interest and return principal at maturity. Bonds are typically issued by governments or public sector entities. NCDs (Non-Convertible Debentures) are issued by private companies and NBFCs. NCDs generally carry higher yields than government bonds to compensate for higher credit risk, and they are listed on stock exchanges.
Are bonds safer than fixed deposits?
Government Securities (G-Secs) are backed by the Government of India and considered the safest fixed-income instruments in India — safer than even bank FDs which are insured only up to ₹5 lakh. Corporate bonds and NCDs carry credit risk depending on the issuer. AAA-rated corporate bonds are considered very safe, while lower-rated instruments carry higher default risk and offer higher yields.
How are bond returns taxed in India?
Coupon interest from bonds is taxable as income at your applicable slab rate. Capital gains from selling bonds before maturity are taxed as short-term (slab rate) or long-term (12.5% without indexation for listed bonds held over 12 months) capital gains. Interest from certain infrastructure bonds and PSU bonds may have specific tax benefits. We guide you on the tax implications of each instrument.
What is yield-to-maturity and why does it matter?
Yield-to-maturity (YTM) is the total annualised return you will earn if you hold a bond until it matures, factoring in the coupon payments and any difference between the purchase price and face value. It is the true measure of a bond's return. We compare YTMs across bonds to identify which offers the best value for your investment horizon.
How can I invest in government bonds in India?
The RBI launched the Retail Direct platform (rbiretaildirect.org.in) which allows individual investors to buy G-Secs, SDL, and Sovereign Gold Bonds directly without a broker. You can also purchase government bonds through your broker's platform. We guide you through the RBI Retail Direct account setup or broker-based route depending on your preference.
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