Archive for ‘Bonds’

December 23, 2011

Moody’s Upgrades Indian Bonds

Earlier Moody’s downgraded Indian Banking sector few weeks back. The same rating agency has sweetened the Indian economy when it needed some help as week rupee, huge fiscal deficit, and policy paralysis made things worse her in India. Its expected that this upgrade will help Indian economy inshort term as well as long term and some foriegn currency, mainly US dallor may come to India for better returns.

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September 23, 2011

Introduction to Bond’s Basics

Bond is a type of loan. Where subscribers are lender and issuing company is borrower. Bonds have a prefixed interest rate and interest payment schedule and maturity period. Bonds are debt and totally different from stocks. Bonds are the financial instruments have lower risk compared to equity and many other financial instruments. So the returns from bonds are also lower than that of many financial instruments such equity, mutual funds etc.

So question arise why you should invest in bonds when they offer lower returns than many other investment avenues? There are some reasons behind the investment bonds even these offer lower returns. The reasons are:

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