Bond; a not so secret agent

Sangeeta27 May, 2024Finance

You may wonder - what?s in it for the investor? Well, in return for the investment made by the investor, the issuer shall then add an interest amount over the principal amount invested. These interest payments are usually fixed in nature and follow a predetermined schedule. Thus, bonds are also commonly known as fixed income instruments. So why are bonds still alien to us? It?s mainly because bond as investment instrument was only accessible to HNIs (High Net-worth Individuals) due to its high ticket size (i.e. the minimum investment amount was very high). However, in recent years, bonds have been made accessible to the masses by facilitating investment through small ticket sizes (even as low as a hundred rupees).