All portfolios ought to be diversified between fairness and debt in order that the general threat is managed. Amongst debt devices in India, there are numerous sorts of bonds obtainable, with completely different options—length, tax advantages, coupon charges, and lock-ins.
Some sorts of bonds provide taxation advantages, and a few have coupon charges greater than fastened deposit charges. But others may be invested in to keep away from paying long-term capital positive factors tax. Whereas it’s worthwhile to maintain some until maturity to avail tax profit, you’ll have to pay tax on some for those who maintain until maturity. Check out the relevant taxation earlier than investing.
Bonds
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