Corporate Deposits & Bonds
Corporate deposits and bonds are investment instruments offered by companies to raise funds from the public or institutional investors. These instruments are designed to provide investors with regular returns while maintaining capital safety. They are popular among those seeking predictable income without equity market exposure.
Types of Corporate Deposits & Bonds
Fixed Deposits by Companies
These are term deposits offered by companies for a fixed tenure, paying a predetermined interest rate. They are often shorter-term compared to bonds and may carry varying credit ratings.
Corporate Bonds
Secured Bonds: Backed by the company’s assets, offering higher security for investors. Unsecured Bonds: Not backed by assets, relying solely on the company’s creditworthiness. Convertible Bonds: Can be converted into company shares after a specified period. Non-Convertible Bonds: Cannot be converted into equity; purely debt instruments.
Why Invest in Corporate Deposits & Bonds
Fixed Income
Receive regular interest payouts over the tenure.
Specified Tenure
Clear maturity period ranging from short to long term.
Credit Rating Insight:
Many instruments carry credit ratings that indicate the risk level.
Transferable in Some Cases
Certain bonds can be traded or transferred before maturity.
