Invest · Bonds
Steady income, less drama.
Bonds pay you regular interest and return your money on a set date. Here is how they work, and how Savart helps you use them.
What is a bond?
A bond is a loan you give to a government or a company. In return they pay you interest at set times, and they return your money on a fixed date called the maturity date.
Because you know what you are due and when, bonds are generally steadier than stocks. That predictable income is the main reason people hold them.
Types worth knowing
A short note on each, from the safest to the more adventurous.
Government securities (G-secs)
Bonds issued by the government. Because the government backs them, they are generally considered the safest kind.
Corporate bonds
Loans to companies. They usually pay more interest than G-secs, and in return they carry more risk.
Tax-free bonds
Bonds where the interest you earn is exempt from income tax, often issued by government-backed entities.
Bond funds
A managed basket of many bonds you buy as a single fund, so you spread your money without picking each bond yourself.
Where bonds fit
Bonds add stability and regular income to a portfolio. They balance out the ups and downs of stocks, and they suit goals that are a few years away, where you want less surprise.
Honest note: bond prices can move with interest rates, and company bonds carry credit risk, which is the chance the issuer cannot pay you back. So bonds are steadier than stocks, not free of risk.
Advice, in plain words
How Savart helps
We advise on how much of your portfolio should be in bonds and which ones fit your goals, with the reasoning spelled out so you can question it. No jargon, no black box.
Questions, answered
Are bonds risk-free?
No. Bond prices can move when interest rates change, and company bonds carry credit risk, which is the chance the issuer cannot pay you back. Government securities are the steadiest, but no investment is completely without risk.
How are bonds different from a fixed deposit?
A fixed deposit is a fixed return from a bank for a set term. A bond is a loan to a government or company that pays interest and can also be bought and sold before it matures, so its price can move in the meantime. Bonds can offer more variety, and with that comes a bit more to weigh up.
Can I sell a bond before it matures?
Often yes. Many bonds can be sold in the market before the maturity date, but the price you get depends on interest rates and demand at that time, so you might get more or less than you paid.
Do you advise on bonds?
Yes. As a SEBI-registered advisor, Savart helps you decide how much of your portfolio should be in bonds and which ones suit your goals, with the reasoning explained in plain words.
Put bonds to work for you.
Talk to an advisor about where bonds fit, or get the app to start. See everything you can invest in.