According to experts, as it is important to diversify your equity portfolio, it is equally important to spread your fixed income investments. A lesser known fixed income option but that can boost your fixed income portfolio is corporate bonds. Many good quality corporate bonds currently fetch 9-11% per annum yield compared to a 6-7% annual interest rate on 1-3 year bank FDs. Take for instance the bonds, which are currently open for subscription-Credit Access Grameen Limited and Viviriti Capital. They hold a coupon of 9.10% to 9.57%, respectively. "Every asset class has a role to play in a portfolio: equity is for growth, and fixed-income instruments like corporate bonds offer stability in a portfolio and generate income," says Bhuvanesh R, AVP, Business Analysis, Zerodha & Rainmatter.
WHAT ARE CORPORATE BONDS: Corporate bonds are issued by companies for raising finance for a variety of reasons such as for building a new plant, buying equipment or for business expansion. They are typically issued for more than a year. So far this year, companies have raised INR 6240.49 crore by issuing bonds. "The maturity of corporate bonds can start as low as 24 months to 10 years - so this flexibility (maturity profiles) allows investors to align their investments with their specific financial objectives. Whether it's a short-term liquidity requirement or a long-term goal, corporate bonds can offer maturities that cater to diverse needs." says Gaurav Sharma, Vice-President, IND Money.
Diese Geschichte stammt aus der September 2023-Ausgabe von Entrepreneur magazine.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der September 2023-Ausgabe von Entrepreneur magazine.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
ROAD TO REGULATIONS
While ensuring safe and legal usage of Al, Indian parliamentarians call for a breathing space for startups to grow in
What It Takes To Run A Family Business
Assimilation involves role clarity, accountability trackers, quarterly dialogues, industry leader mentorship and external work experience
I Know Why Your Customer Service SUCKS
That's because I left my high-paying executive job, worked five low-wage frontline jobs, and experienced the problem firsthand. Here's what I learned about fixing it.
The Hire That Changed Everything
What roles do you need to fill at your company? It's sometimes hard to know. Here, six leaders share the hire they didn't realize they needed (and are so glad they made).
An Empowering Coin
The rise in female retail cryptocurrency investors and why the ecosystem needs more of them
Plans To Expand Presence Its India
To cater to its new segment, MediaTek is increasing its engineering presence and R&D development in India, says Anku Jain, MD, MediaTek India.
India Needs Homegrown Product Companies In Semiconductor
CADENCE DESIGN'S INDIA MD
GROWING WATER SCARCITY IN INDIA REPRESENTS AN OPPORTUNITY FOR NEW AGE START-UPS
The way in which India manages its scarce water resources accounts for much of its water woes.
Google's Shocking Surge in Carbon Emissions Sparks Industry-wide Sustainability Reassessment
According to International Energy Agency, (IEA), Global energy-related CO2 emissions grew by 0.9 per cent or 321 Mt in 2022, reaching a new high of over 36.8 Gt.
EV Industry Lauds UP Govt's Decision On Strong hybrid Vehicles
This comes after the Uttar Pradesh government had announced a threeyear exemption from tax and registration fees for the purchase of EVs which will be valid for five years for EVS manufactured within the state, last year.