04 — Fixed Income
Bonds
Direct fixed-income exposure, curated for yield and safety.
Sovereign, PSU, and high-grade corporate bonds — held directly for predictable coupons, defined maturities, and clean cash-flow planning.
Bonds are direct loans to governments and corporates, held to a defined maturity at a defined coupon. Held directly, they give you yield-to-maturity certainty that funds cannot replicate.
Fig. 04 — Bonds
Fixed Income
Horizon
3 – 15 years
Risk
Low – Moderate
Liquidity
Exchange-traded / hold to maturity
Ticket size
₹10 L – ₹1 Cr+
I — What are Bonds
In India, bonds are issued by the Government as well as the private-sector entities, to raise money for a specific purpose. They are essentially interest-bearing debt certificates. Bonds are like a loan which carries an interest rate and must be repaid on a specified date. Government and large corporations issue bonds when their funding requirement cannot be met from any other source. Bonds have a specified maturity period upon completion of which the borrower (Government or Private Corporation) will return the money to the lender. The money will be returned along with interest, specified at the time of issue, and specified intervals.
Type of Bonds:
- Government Bonds
- Municipal Bonds
- Corporate Bonds
- Public sector bonds
- High Yield Bonds
Markets:
The Indian bond market comprises of various types of bonds as mentioned above. The market can be divided into two categories.
- Primary Market
- Secondary Market
How it works
A four-step process
01
Curate universe
SDLs, G-Secs, AAA PSU, and select AA+ corporate paper — sourced through institutional desks.
02
Ladder maturities
Rungs at 3, 5, 7, and 10 years let cash-flows meet real-world liabilities.
03
Lock the yield
YTM at purchase is your return if held to maturity — no manager, no NAV volatility on the outcome.
04
Roll or exit
At maturity, we roll into the prevailing yield curve or redeploy elsewhere.
Chapter — Fit
Who this is for.
Bonds is not for every investor — and that is the point. We choose it deliberately, when the mandate calls for it.
01
HNI portfolios of ₹1 Cr+
02
Families planning defined future outflows
03
Retirees wanting predictable coupons
04
Corporate treasuries diversifying deposits
Why it works
Structural advantages
01 / 04
Yield certainty
Held to maturity, YTM at purchase is what you earn — cash-flow planning without guesswork.
02 / 04
Sovereign safety
G-Sec and SDL exposure carries no credit risk.
03 / 04
Direct ownership
You own the security; no expense ratio erodes returns.
04 / 04
Tax planning
Structure across G-Sec, corporate bonds, and 54EC to optimise post-tax yield.
Reference — Types of Bonds
Regulatory framework
Bonds are interest-bearing debt certificates issued by governments and corporates to raise capital, redeemed at maturity with a defined coupon.
01
Government Bonds (G-Secs)
Issued by the Government of India; sovereign backing and zero credit risk.
02
State Development Loans
Issued by state governments; quasi-sovereign, typically yielding a small spread over G-Secs.
03
Municipal Bonds
Issued by urban local bodies to fund civic infrastructure projects.
04
Public Sector Bonds
Issued by PSUs and public financial institutions — high-grade credit, attractive spreads.
05
Corporate Bonds
Issued by private companies across the ratings spectrum, from AAA to sub-investment grade.
06
High Yield Bonds
Below investment grade paper offering higher coupons for elevated credit risk.
Considerations
What we tell you before you commit.
01
Reinvestment risk on coupons in falling-rate cycles.
02
Liquidity in secondary market can be uneven for retail lots.
03
Credit risk on corporate paper — mitigated by curation.
Frequently asked
Answered plainly
Bonds vs. debt funds?
Bonds give yield certainty at maturity; debt funds give liquidity and diversification. Sophisticated portfolios use both.
What about tax-free bonds?
Legacy issues trade in secondary — we source when yields are attractive relative to taxable alternatives.
Ready to explore this route for your portfolio?
A private, no-obligation conversation with one of our experts — begin with your mandate, not a product.