Government & Corporate Bonds
Invest in government and corporate bonds for stable, predictable returns.
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Talk to an experienced advisor about government & corporate bonds.
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What is Government & Corporate Bonds?
Bonds are fixed-income instruments that offer investors regular interest (coupon) payments and return of principal at maturity. They occupy an important position in a balanced portfolio — providing predictable income and lower volatility than equities while offering better post-tax returns than FDs in many cases. The bond market offers a range of options: Government Securities (G-Secs) and State Development Loans (SDLs) backed by sovereign guarantee, PSU bonds from entities like NABARD, REC, and PFC that carry AAA ratings, and corporate bonds issued by private companies at higher yields. Corporate bonds allow well-established companies to raise capital directly from investors, and in return investors earn attractive coupon rates that typically exceed government bond and FD yields — with the level of risk depending on the issuing company's credit quality. At Right Assets Management, our advisors help investors access the right government and corporate bond opportunities for their fixed-income allocation. We analyse credit ratings (CRISIL, ICRA, CARE), compare yields, evaluate call and put options in callable bonds, and assess the issuer's financial strength before making any recommendation. With RBI policy rates being a significant driver of bond prices, our advisors also guide you on duration management — helping you avoid the trap of locking into long-duration bonds at unfavourable rate cycles.
Who Is This For?
- Conservative investors wanting regular income from coupon payments with better yields than bank FDs
- HNI investors building a diversified fixed-income portfolio as a counterweight to equity exposure
- Senior citizens seeking predictable quarterly or annual income without market risk
- Investors nearing retirement wanting to shift from equity to stable income-generating fixed-income instruments
- Individuals wanting sovereign safety through G-Secs and PSU bonds with RBI-guaranteed returns
- Sophisticated investors seeking higher yields from AA/AA+ rated corporate bonds within their risk tolerance
How We Help — Step by Step
Fixed-Income Allocation Assessment
We assess the appropriate allocation to government and corporate bonds within your overall portfolio based on your income needs, risk profile, and investment horizon.
Instrument Selection
We identify the right bond categories — G-Secs, PSU bonds, or corporate bonds — based on your required yield, credit risk tolerance, and tenure preference.
Credit Analysis
For corporate bonds, we review credit ratings, issuer financials, sector outlook, and past debt repayment history to assess default risk before recommending any instrument.
Yield & Duration Analysis
We calculate and compare yield-to-maturity (YTM) across instruments, assess duration risk (interest rate sensitivity), and recommend bonds appropriate for the current rate environment.
Account & Platform Setup
We assist with setting up the necessary Demat account and bond investment platform (RBI Retail Direct for G-Secs, or broker platforms for corporate bonds) if not already in place.
Investment Execution
We guide you through the investment process — primary market bond applications or secondary market bond purchases — ensuring correct execution at fair prices.
Portfolio Monitoring & Maturity Management
We monitor your bond portfolio for any credit events, rating downgrades, or corporate actions, and advise on reinvestment strategy as instruments mature.
Why Choose Right Assets for Government & Corporate Bonds?
- Earn regular coupon income from bonds while preserving capital — ideal for income-seeking investors
- Diversify beyond FDs into higher-yielding instruments without taking on equity market risk
- Access government-backed G-Secs and PSU bonds with sovereign or quasi-sovereign safety
- Benefit from inflation-linked returns through instruments like RBI Floating Rate Bonds linked to NSC rates
- Receive independent credit analysis before investing — we identify risks that marketing material may not highlight
- Understand yield-to-maturity, duration, and interest rate risk in simple terms before committing funds
- Build a laddered bond portfolio for regular maturity proceeds and reinvestment flexibility
Documents Required
Frequently Asked Questions
What is the difference between a government bond and a corporate bond?
Both are debt instruments issued to raise funds, on which the issuer pays regular interest and returns principal at maturity. Government bonds are issued by the government or public sector entities and carry sovereign or quasi-sovereign safety. Corporate bonds are issued by private companies and NBFCs, and generally carry higher yields than government bonds to compensate for higher credit risk. Many corporate bonds are listed on stock exchanges, providing secondary market liquidity.
Are bonds safer than fixed deposits?
Government Securities (G-Secs) are backed by the Government of India and considered the safest fixed-income instruments — safer than even bank FDs which are insured only up to ₹5 lakh. Corporate bonds carry credit risk depending on the issuer. AAA-rated corporate bonds are considered very safe, while lower-rated instruments carry higher default risk and offer higher yields.
How are bond returns taxed?
Coupon interest from bonds is generally taxable as income, and capital gains from selling bonds before maturity are taxed based on the holding period as per prevailing tax rules. Certain infrastructure and PSU bonds may have specific tax treatment. Since tax rules change from time to time, we guide you on the current tax implications of each instrument before you invest.
What is yield-to-maturity and why does it matter?
Yield-to-maturity (YTM) is the total annualised return you will earn if you hold a bond until it matures, factoring in the coupon payments and any difference between the purchase price and face value. It is the true measure of a bond's return. We compare YTMs across bonds to identify which offers the best value for your investment horizon.
How can I invest in government bonds?
The RBI launched the Retail Direct platform (rbiretaildirect.org.in) which allows individual investors to buy G-Secs, SDL, and Sovereign Gold Bonds directly without a broker. You can also purchase government bonds through your broker's platform. We guide you through the RBI Retail Direct account setup or broker-based route depending on your preference.
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Talk to our advisors about Government & Corporate Bonds — no commitment, no sales pressure.