InvestorQ : I want to buy safe bonds, what are the options?
Neha Samdani made post

I want to buy safe bonds, what are the options?

Answer
image
Sam Eswaran answered.
1 month ago
Follow
To know whether a bond is a safe bond, you should keep the following points in mind:

Bonds that have credit ratings such as AAA, AA+, AA are more reliable and have better creditworthiness than those with the rating A, BBB, and so on.

Whether the bonds are secured or unsecured? If the bond is secured, it is better and safer as their issue is linked to the hypothecation of assets. So, if there is a default, the debenture trustee could sell the assets hypothecated by the company.
If the bonds are PSU bonds, i.e., government bonds, they are safe. These bonds are backed by the government and hence have better credibility than any other bond.

You should also check the issuer’s record in corporate governance, etc. Bonds issued by business houses with better corporate governance and ethics are better.

Bonds are secondary market products with a minimum ticket size of Rs 10 lakhs but can also be bought in smaller lots. You can purchase these bonds either from stock exchanges as they are listed. You can also buy PSU bonds from any bank that has been assigned with the issue of such bonds. You can also reach out to a broker, brokerage firm, bank, bond trader to buy other corporate bonds. IIFL also provides brokerage services, so you can also check out their website for more.
2 Views

image
vp chaudhary answered.
1 month ago
Follow

Regulated for Piramal retail finance company. 

0 Views