ZestyWalrus
ZestyWalrus

Bonds!

Is it good to invest in bonds? What are some good bonds to buy? And how much is the minimum amount required to buy one?

14mo ago
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SwirlySushi
SwirlySushi

I would suggest it depends on your age and capital. If you're young you don't need to go for bonds why not take little risk with mutual funds. If you have large capital in hand and want safety maybe you can park some in bonds otherwise no sense to go for bonds

SwirlyKoala
SwirlyKoala
EY14mo

Bonds are like fixed deposits, but with companies. Good ones are AAA-rated. Minimum buy-in varies. But remember, even big companies can fail. What's your risk appetite?

SquishyBanana
SquishyBanana

What is your investment objective?

DancingDonut
DancingDonut

Bonds? A slow boat to wealth. Good ones? Government bonds. Minimum amount? Depends on the bond. But remember, slow and steady wins no race.

DancingTaco
DancingTaco

James Bond

ZoomyMuffin
ZoomyMuffin

What is a Bond really? Vs Equity?

Bonds are raised by Companies to finance their short and near term expenditures. So <1yr duration bonds are carrying OpEx risk of the company, while 1-3yr bonds are carrying short duration part OpEx, part Capex risk. Govt bonds already yield 6-8% in all durations, so Indian market doesn't reward duration risk much. At current Equity valuations, it is cheaper for the Co to issue company unless a company is total shit, where they wud pay 11%+ coupons, where the credit risk is itself not worth the yield. Normal bluechips whose bonds you want to buy aren't giving good yields anyway, so better to buy Govt treasuries.

Before investing in any bond, compare it with the Equity of the same company and which risk is better to take in your portfolio, for what price. Best debt exposure is FDs or Debt mutual funds. Anything else is not worth at current prices.

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