Invest in Bonds Online

Bonds are fixed income instruments, which the governments and entities issue to raise money for financing their projects, expenditures and other activities. In this, the investor purchasing bonds in India basically lends money to the bond-issuing entity. In return, the entity pays interest at periodical intervals (typically monthly/quarterly). When the bond reaches its maturity date, the bondholder gets back the principal value (face value) of the bond. Thus, bondholders can be considered as creditors for the bond issuers.

Bonds interest rate is the interest rate a bond issuer promises to pay on a bond’s face value. More simply, it is the amount bondholders receive periodically on their bond investment. So, let's say if a bond has a face value of Rs 100 and a interest rate of 8.24%, then the annual coupon (interest earnings) would be Rs. 8.24.

Based on coupon rate, bonds are categorised as fixed rate bond and floating rate bonds. In case of fixed rate bonds, the interest payments remain fixed or unchanged till the bond's maturity date. However, in case of floating rate bonds, the coupon rate is reset at predefined intervals and is based on a pre-specified market-based interest rate. Thus, interest payments may vary during the bond tenure.

Bonds offer several key benefits, including steady income generation, capital preservation, and portfolio diversification, making them a cornerstone of a balanced investment strategy. Below are the mentioned top 6 reasons to invest in Bonds online with Paisabazaar:

Steady Income Stream:

Bonds usually offer fixed interest at regular intervals, providing investors a steady income stream.

Capital Preservation:

The principal of bonds is repaid at maturity, making them ideal for those seeking capital protection amid market volatility.

Diversification:

Investing in bonds can offset the risks associated with more volatile assets like stocks.

Lower Volatility:

Bonds usually show lower price volatility than stocks, offering stability to risk-averse investors.

Predictable Returns:

Bonds offer fixed interest and guarantee to return the principal at maturity, helping investors estimate their future returns and plan their finances in advance.

Potential for Capital Gains:

Investors usually hold bonds for income, however, they can also provide profits if they are sold at higher prices before maturity.

Here are a few points that investors should consider before buying & investing in bonds in India:

• Check the bond issuer's credit rating:

  This is a preliminary but important check as it will help you filter out riskier bond options from your list. Usually, AAA rated bonds are the safest bet with a very low chance of default.

• Look into the bond issuer's financial health:

  Don't solely rely on credit ratings, make sure to look at the bond issuing entity's financials too such as balance sheet, P&L account, leverage ratios, etc. to evaluate corporate bonds in India.

• Check if the bond is secured or unsecured:

  This is applicable to corporate bonds. A secured corporate bond in India is backed by assets of the bond issuing entity and therefore, are safer than unsecured bonds. In case the bond issuer closes down or defaults on its repayment obligations, the pledged assets can be sold off to repay the bondholders. Among the secured bondholders, senior secured bondholders will be the first to receive repayments (right after payment of statutory and tax dues).

• Check the frequency of coupon payment:

  Bonds in India offer coupon payments at regular intervals, i.e., monthly, quarterly, half-yearly and annually. Before you start investing in a bonds online, check the frequency of its coupon payments and ensure that it matches with your cash flow requirements.

• Compare YTM:

  Yield to Maturity of a bond is the annualised rate of return if the investors holds the bond till its maturity date. Thus, always compare the YTM of a bond and remember to check its credit rating also. As lower credit rating bonds have higher YTM and vice versa, make sure that you make your pick as per your risk appetite.

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India’s first blue bond issue planned by Sagarmala Finance - September 22

Sagarmala Finance Corporation plans to raise funds through what is being described as India’s first blue bond issue, scheduled for September 28. Blue bonds are designed to finance projects linked to marine and water-related activities, adding a new segment to India’s sustainable finance market.

Reliance Industries may raise ₹12,500 crore through bonds - September 9

Reliance Industries is reportedly preparing to raise around ₹12,500 crore through domestic bonds, potentially making it the largest bond deal by a listed Indian company in the domestic market this year. The issue could come as early as next week.

Canara Bank and Bank of Maharashtra plan $1 billion in dollar bonds - September 9

Canara Bank and Bank of Maharashtra are planning to raise $500 million each through US-dollar-denominated bonds. The proposed bonds could have three- or five-year maturities and would be issued under the RBI's concessional swap window, which helps reduce the cost of hedging currency risk.

Indian Government Bonds Slump in Nearly a Month as Middle East Oil Risks Rise - 20 July, 2026

The 10-year Indian government bond experienced a significant decline in nearly a month due to rising U.S.-Iran tensions, which pushed oil prices higher, hurting the Indian rupee and prompting traders to cut their positions in government bonds. As India imports most of its oil, higher crude prices strain India's import bill and government finances. Foreign investor demand for Indian debt is expected to moderate following recent inflows.

RBI absorbs over ₹6 lakh crore from banking system - September 7, 2026

The RBI conducted liquidity-absorption operations and took more than ₹6 lakh crore out of the banking system. Around ₹3.53 lakh crore was absorbed through an overnight operation and ₹2.59 lakh crore through a 30-day operation. In simple terms, the RBI is temporarily taking excess money away from banks. This could affect short-term interest rates and remains an important factor for the bond market this week.

Sammaan Capital considers Tier I and Tier II debt fundraising - September 7

Sammaan Capital is considering continuing its authorisation to raise funds through Tier I and Tier II debt instruments. The company's board is reviewing the proposal as part of its broader funding plans.
If approved and subsequently issued, these instruments would allow the company to raise additional capital from the debt market.

Emkay Global allots ₹50 crore NCDs at 11.50% - September 7

Emkay Global Financial Services allotted ₹50 crore worth of non-convertible debentures (NCDs) carrying an 11.50% coupon rate. The development adds to the week's corporate debt-market activity.
For investors, the announcement is relevant because NCDs are fixed-income instruments that can offer regular interest income, although returns come with issuer and market-related risks.