Stable Income Solutions
Corporate & G-Sec Bonds
Direct bond investments with fixed coupon payments — PSU bonds, NCDs and government securities.
- Minimum
- ₹10,000
- Risk
- Moderate risk
- Liquidity
- Low — difficult to exit early
Overview
What this actually is
Buying a bond directly means lending to the issuer yourself. You receive a fixed coupon at set intervals and your principal back at maturity, provided the issuer pays.
Government securities carry sovereign risk, which in rupee terms is the lowest available. Corporate bonds and NCDs pay more precisely because they carry more risk — the extra yield is compensation for the possibility that the issuer does not pay.
Why consider it
What it does well
- Coupon and maturity date are known when you buy.
- G-Secs carry sovereign risk — the lowest credit risk available in rupees.
- Predictable payment dates make cash-flow planning straightforward.
- Holdings are rated and vetted before they are offered.
Key details
The specifics
- Minimum
- ₹10,000
- Instruments
- PSU bonds, NCDs, government securities
- Income
- Fixed coupon, taxed at slab rate
- Liquidity
- Low — thin secondary market
Who is this for
You might be a fit if…
If none of these describe you, that is useful information too — tell us on the call and we will point you somewhere more suitable.
- Investors wanting contracted income on known dates
- Retirees planning around specific cash-flow needs
- Investors comfortable holding to maturity
Risks & considerations
- Credit risk. If the issuer defaults, you can lose coupon payments and principal. A credit rating is an opinion, not a guarantee, and ratings are downgraded.
- Interest-rate risk. If rates rise after you buy, the market price of your bond falls — which matters if you need to sell before maturity.
- Liquidity risk. The Indian retail secondary bond market is thin; selling before maturity may be difficult or require accepting a discount.
- Coupon income is taxable as income at your slab rate.
- Higher-yielding bonds carry proportionally higher credit risk. Yield is compensation for risk, not a free lunch.
Important information
Investment in securities market are subject to market risks. Read all related documents carefully before investing.
Indicative yields. Not a guarantee. Subject to market and credit risk. Consult your advisor.
Sarvam Associates is a distribution partner, not the manufacturer of these products.
Also in Stable Income Solutions
Debt Funds
Debt Mutual Funds
Liquid, ultra-short, short-duration and corporate bond funds for investors who need stability with access.
Moderately Low risk- Liquidity
- High — redeem in days
From ₹1,000Fixed Income
Structured Fixed Income & MLDs
Market-linked debentures and structured products with defined payoffs. Base capital protection available on select offerings.
Moderately High risk- Liquidity
- Low — difficult to exit early
From ₹10 Lakh
Next step
Talk to a Sarvam advisor
Fifteen minutes on corporate & g-sec bonds — whether it fits, what it would cost you, and what could go wrong. No obligation either way.
Important information
Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing.
Sarvam Associates is a distribution partner, not the manufacturer of these products.
The content on this website is for general information only and does not constitute investment advice or a recommendation to buy or sell any product. Product suitability depends on your individual circumstances. Please speak with an advisor before investing.