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Discover the different types of bonds available in India. Each bond type offers unique features, risk profiles, and returns to match your investment goals.
Sovereign-backed bonds issued by the Government of India. Zero default risk with guaranteed returns. The benchmark for all other bonds in India.
Bonds issued by state governments with slightly higher yields than central G-Secs. Near-sovereign safety with 20-50 bps extra return.
Short-term government securities (91/182/364 days) issued at discount. The safest way to park short-term funds with better returns than savings accounts.
Bonds issued by companies to raise capital. Higher yields than G-Secs but come with credit risk. Choose from AAA to lower-rated bonds based on your risk appetite.
Bonds with completely tax-exempt interest income. Issued by government PSUs like NHAI, REC, PFC, and IRFC. Ideal for high tax bracket investors.
Government bonds denominated in grams of gold. Get 2.5% annual interest plus gold price appreciation. Better than physical gold with tax benefits.
Government bonds with interest rate linked to NSC. Rate resets every 6 months, providing protection against interest rate changes. 7-year tenure.
Save LTCG tax on property sale by investing up to ₹50 lakh in these bonds. 5-year lock-in with 5% interest. A must-know for property sellers.
| Bond Type | Safety | Typical Yield | Min Investment | Best For |
|---|---|---|---|---|
| Government Securities | Highest | 6.9-7.25% | ₹10,000 | Risk-averse investors |
| State Development Loans | Very High | 7.3-7.6% | ₹10,000 | Yield seekers (safe) |
| Treasury Bills | Highest | 6.6-7.0% | ₹10,000 | Short-term parking |
| Corporate Bonds | Rating-based | 8.5-10%+ | ₹10,000 | Higher return seekers |
| Tax-Free Bonds | High | 7-7.5% (tax-free) | ₹10,000 | High tax bracket |
| Sovereign Gold Bonds | Highest | 2.5% + gold gains | ~₹6,500 (1g) | Gold investors |
| RBI Floating Rate Bonds | Highest | 8.05% (floating) | ₹1,000 | Long-term safe income |
| 54EC Capital Gains Bonds | High | 5.0% | ₹10,000 | Property sellers (tax) |
Dive deep into each bond type to understand which one is right for your investment portfolio.