Have you ever invested in bonds freshly issued?
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Bonds: An introduction
Have you ever bought corporate bonds? Or for that matter of fact, infrastructure bonds? Bonds are actually made for encouraging investments which are related with a specific purpose whatsoever. Bonds are however considered to be risky investments as has been disclosed by the experts. Such investments therefore call for an advance planning, in order to be implemented.
Why are new bond issues considered to be riskier?
New bond issue is always encouraged by the issuer in order to collect fresh funds. Collection of fresh funds do call for a major planning, and hence such issuances are publicly advertised in order to be attracting the attention of the public. In order to invest in the new bond issues one needs to be very careful. It is in fact, a matter of priority, that, one should carefully go through the terms and condition of investments in case of investing in a new bond.
What are the different kinds of bonds available in the market?
As far as the Indian market goes, there are typically various categories of bonds available in the market. Examples are corporate bonds, infrastructure bonds etc.
What is the kind of return that might be expected from bonds?
Buying bonds however, yields an unexpected return only when the market situation is under control. In most of the cases, such kind of investments are subject to market risks. Therefore, even after having a lot of expectations from the market, in some cases you can have minimum returns.
What are the purposes of investing in bonds?
This is a very common question which have been raised by most of the people interested in buying bonds. Experts agree to the fact that, each and every bond issued in the market, has a specific purpose. From the socio-economic point of view bonds are understood to be debt securities which are used for social and economicalupliftments. These kind of investments help to generate jobs in the economy as well.
Issuance of new bonds: What kind of significance does it bring?
New bond issue remains to be one of the most significant acts in the economy. Bond release or issuance are encouraged by the Government, or the corporates in order to meet specific purposes. Investment in bonds signify that, you are contributing to the economy in a positive way. With your money bridges and roads are being built. At the same time if you buy corporate bonds you are significantly and consciously contributing in the growth of the businesses.
Buying bonds happen to be a new trend of investment in the contemporary market. Buying stocks can also be considered to be a form of investment, but this varies from the trend of investment in bonds. Investments in bonds are considered to be quite risky, but at the same time, can give you a satisfaction that you have contributed to the socio economic process of growth as well. Experts can assist you in buying bonds, but you need to be careful enough before you are actually making an investment.