Bonds are fixed-income securities issued by governments, municipalities, or corporations to raise capital. When you invest in bonds, you are essentially lending money to the issuer in exchange for regular interest payments and the return of the principal amount upon maturity. Bonds are considered a relatively safe investment, offering a predictable income stream and lower risk compared to stocks, making them an ideal choice for conservative investors looking for stability. At Satva Securities, we offer a range of government and corporate bonds, allowing you to invest in reliable, low-risk securities that help diversify your investment portfolio. These bonds provide steady returns in the form of periodic interest payments (coupon payments) and are suitable for individuals seeking to preserve capital while earning consistent income.
Non-Convertible Debentures (NCDs) are fixed-income instruments issued by companies to raise capital. Unlike convertible debentures, NCDs cannot be converted into equity shares of the company. NCDs typically offer higher interest rates than bonds, making them an attractive investment option for those seeking fixed income with the potential for better returns. They are generally issued by large companies with a high credit rating, ensuring that investors receive stable and predictable returns over a set period. NCDs come with a fixed interest rate that is paid to the investor periodically, and at maturity, the principal amount is returned. These instruments are ideal for investors looking for higher returns compared to traditional bonds, without the volatility and risk associated with equity investments. Since NCDs are typically offered with longer maturity periods (ranging from 1 to 5 years), they provide a consistent income stream, which is attractive to individuals or institutions seeking stable, predictable cash flow.
Company Deposits are a type of fixed-income investment where you deposit a lump sum amount with a company for a fixed period, in exchange for regular interest payments. These deposits are similar to bank fixed deposits but are offered by companies instead of banks. Company deposits are considered a stable and secure investment option for investors who want predictable returns with relatively low risk. These deposits generally offer higher interest rates than bank fixed deposits, making them an attractive option for investors seeking stable returns. The interest rates are fixed for the duration of the deposit, and the company guarantees the repayment of the principal along with interest at maturity. As a low-risk investment, company deposits are especially suitable for conservative investors or those who want to preserve capital while earning a reliable income.
