What problems come with “State Development Loans” (SDLs)? ‘SDL full form’ refers to State Development Loans, designed to help Indian state governments manage their budgets and secure necessary funding. However, there are some concerns about them. Are SDLs a safe long-term investment for people, or do they hide financial risks? How do these loans meet […]
Differences Between Coupon Rate and Bond Yield
What distinguishes the coupon rate from the bond yield, and why does this difference matter for investors? When it comes to investing in bonds, the differences between coupon rates and bond yields are really important. The coupon rate is the fixed interest rate that a bond pays, while the yield can change based on market […]
Fixed Deposit Money Double Scheme: All You Need to Know
When looking at “Fixed Deposit Double Schemes,” a critical question emerges: Are they as advantageous as they appear, or do they come with hidden drawbacks that investors might overlook? Fixed Deposit Money Double Scheme works by adding a fixed interest rate to your initial amount over a set period. The interest rate and how often […]
Convertible Debentures: A Complete Guide
Introduction: Convertible debentures are hybrid financial instruments, blending debt and equity benefits. They allow investors to convert debt into equity shares of the issuing company under specific terms, which can enhance portfolio diversification and flexibility. What are Convertible Debentures? Convertible debentures are unsecured loans provided to a company by investors, who can later convert these […]
Should You Sell Bonds When Interest Rates Rise?
Introduction To Interest On Bonds: Bonds are a popular fixed-income investment, but rising interest rates can impact their value. Knowing when to hold or sell bonds amid rate changes is vital for maximizing returns. Impact of Rising Interest Rates on Bonds: Factors Explanation Bond Price Inverse Relation Bond prices typically drop when rates rise, as […]
Bajaj Energy IPO: An Insightful Guide for Investors
Bajaj Energy Company Overview: Founded to address India’s energy demands, Bajaj Energy Limited (BEL) is one of North India’s prominent thermal power producers. The company currently operates five thermal power plants with a cumulative capacity of 450 MW in Uttar Pradesh, contributing significantly to regional power requirements. Bajaj Energy’s expertise includes efficient power generation through […]
Bonds vs Stocks: Choosing the Right Investment for Your Portfolio
Investing wisely is crucial for financial security, and choosing between bonds and stocks is fundamental. Both options offer unique benefits and risks, influencing how they contribute to portfolio growth. Here’s a closer look at the key differences to help you decide which may suit your financial goals best. What are Bonds? Bonds are fixed-income instruments […]
5-Year RD Tax Exemption in Income Tax: Features and TDS
Have you ever wondered why the interest earned on a 5-year recurring deposit (RD) isn’t eligible for tax exemption under Section 80C? When people look at different ways to invest their money, many consider RDs for their benefit. It’s important to understand how taxes work with these deposits, especially regarding the interest earned and the […]
Exploring Pros, Cons, and Examples of Securitized Debt Instruments
Are the benefits of securitized debt instruments worth the inherent risks they carry? The nature of securitized debt instruments and their noteworthy influence on investment strategies have drawn attention to their role as financial markets evolve. Diverse types of debt can be bundled and sold to investors through securitized debt instruments like mortgage-backed securities (MBS) […]
Secured Bonds vs. Unsecured Bonds: Which Is Right for Your Investment Portfolio?
Investing in bonds is a popular choice for those looking to diversify and secure fixed-income returns. However, not all bonds are the same; they can be classified into two main types: secured and unsecured. Each type has unique risk factors, returns, and purposes. This article will explore the differences between secured and unsecured bonds and […]