What is Wealth?

1) Creditability:

Invest in a company with a good reputation and a good credit rating (given by industry-recognized rating agencies like CRISIL, ICRA)

2) Duration:

Check duration of bond and invest as per your time horizon

3) Tax implication:

Two types of bonds are available.

• a) Taxable and
• b) Tax free Bonds

Reason to Invest?

• Better returns than F.D and postal schemes
• Potential of capital gain
• Regular Fixed Income
• Traded in secondary Market

Ways to Invest?

• Primary market (IPO) (New Bonds)
• Secondary market (Ongoing Inventory)

Tax Implication

• Interest will be added in your income in case of taxable bonds
• Interest is tax free in case of tax free bonds
• Capital Gain: If you sell Bonds in Secondary market at higher price, short term or long term capital gain will be applicable.