Bonds & Fixed Income

    Stable, predictable returns with high-grade Corporate and Government securities. Regulated by SEBI & RBI.

    Investment Options

    Government Securities (G-Secs)

    Issued by the RBI on behalf of the Govt of India. These carry practically zero default risk (Sovereign Guarantee) and are ideal for risk-averse investors seeking long-term stability.

    Corporate Bonds

    Issued by top-rated companies (AAA/AA) to raise capital. They typically offer higher interest rates than Fixed Deposits. We curate only high-credit-quality bonds to minimize risk.

    54EC Capital Gain Bonds

    Specifically designed to save tax on Long Term Capital Gains from the sale of property. Issued by PFC, REC, and IRFC with a lock-in period of 5 years.

    Sovereign Gold Bonds (SGB)

    The Government of India has discontinued new Sovereign Gold Bond issuances, and no new tranches are being issued. Investors who already hold SGBs from earlier tranches continue to hold them through maturity or their scheduled early-redemption windows on the original terms. Gold ETFs and Gold Mutual Funds are the current market-linked alternatives for investors seeking similar paper or electronic gold exposure.

    Read: SGBs Are Discontinued — What to Consider Instead

    Taxation of Bonds

    Tax-Free Bonds

    Issued by government-backed entities like NHAI, PFC, REC.

    • Interest: Completely tax-free in your hands.
    • Capital Gains: Taxed if sold before maturity.
    • Best For: Individuals in highest tax brackets (30%).

    Taxable Bonds

    Includes most Corporate Bonds, NCDs, and G-Secs.

    • Interest: Added to your income and taxed at slab rate.
    • TDS: 10% on interest if listed (usually).
    • Capital Gains: 12.5% LTCG if held > 12 months (for listed).

    Capital Gains When Selling Bonds Before Maturity

    Selling a bond on the secondary market can create a capital gain or loss in addition to the regular interest income received while holding it.

    Instrument or incomeHolding periodTax treatment
    Listed bondsOver 12 months12.5% long-term capital gains tax, with no indexation
    Listed bonds12 months or lessShort-term capital gains taxed at the investor's slab rate
    Unlisted bonds and debenturesAny holding periodAlways treated as short-term gains and taxed at the investor's slab rate
    Interest income on taxable bondsWhile heldAdded to income and taxed at slab rate, with 10% TDS if annual interest exceeds ₹10,000

    Where applicable, investors whose total income is below the taxable threshold may submit Form 15G or Form 15H to avoid TDS.

    Understanding Bond Ratings

    Credit ratings are assigned by agencies like CRISIL, ICRA, and CARE to indicate the safety of the bond. We prioritize high safety.

    AAA
    Highest Safety

    Lowest credit risk. Almost equivalent to sovereign safety.

    AA+ / AA
    High Safety

    Very low credit risk. Good balance of yield and safety.

    A / BBB
    Moderate Safety

    Higher yield but carries moderate credit risk. Only for aggressive portfolios.

    Who Bonds Suit

    Where bonds can fit

    • Investors prioritizing capital preservation and predictable income.
    • Conservative allocations within a broader, diversified portfolio.
    • Near-term goals where maturities can be laddered around expected cash-flow needs.

    Where they should remain supporting assets

    Investors primarily seeking long-term growth should consider equity, mutual fund or PMS allocations instead, with bonds playing a supporting rather than primary role in the portfolio.

    Money n Wealth can help match credit quality, maturity, liquidity and taxation to each goal, then build a bond ladder or fixed-income allocation tailored to the investor's wider portfolio.

    Secure Your Future with Fixed Income

    Add stability to your portfolio with high-yield bonds and government securities.