Why to invest in Government Bonds online in India

 Invest in bonds on the bonds market in India as they are a safe investment option in India with a steady amount of profit. This could be good advice for someone who likes to use a low risk strategy.

When you are considering entering the stock market with bonds, it is advisable to find out a bit more about them.

Why to invest in Government Bonds online in India

Here are the 4 main bond types in India:-

* our national government offers them — Government Bonds
* offered by corporations — Corporate Bonds
* government at a local or state level — State Development Loans

Your original investment amount is protected with these bonds investment in India, unlike best bonds Trading platform in India.

So anyone just starting out with online bonds market trading in India will feel a lot safer. So will people who are low risk investors.

The 3 types of Bonds in India:-

Government bonds also called as G-SEC, are on the market from the Government of India.
Investment in Government bonds in India can be for a short term of three months or a long term of thirty years or any length of time in between.

How to Buy Government Bonds Online

These are the most safe investment option in India of the lot as they are backed by the Reserve bank of India. You can directly Buy Government buy online from BondsIndia.
The downside of them though is that the return tends to be low. Another good bit is that you only have to pay taxes on the interest portion.

Corporate Bonds are on offer from the Securities market.
Investment in Corporate Bonds are offered basically when a corporation wants to pass on its debt.
They offer a bit better interest rate so are a medium risk investment. The risk is that the company offering them will go belly up.

State or local government bonds.
They work more or less the same as corporate bonds. Problems at state or local level are more frequent which makes them a bigger risk than national government bonds.
There is not tax whatsoever on them. That is their great plus. The interest is free of tax. Except maybe a small bit at state level. This makes these municipal bonds an attractive investment.

The rarest are overseas bonds.
The common way to have them is via a an investment in a mutual fund. These should only be considered by a person with a much higher risk strategy. The economies of foreign countries are out of our hands. We have no control over them whatsoever.

You can take out another bond when yours reaches its maturity date.

Finally to reiterate, when you want to invest in bonds, national government ones are safest and foreign government ones are the most risky.

With the way that the economy is today I have had to become the money advice expert for our family and would like to share some ideas that I have found.