Smart Money

When you invest in a bond, you’re essentially lending money to a company or government. In return, you receive regular interest payments (coupons), and the principal amount is repaid at maturity (or in some cases, in scheduled parts over time).

It is the price of the bond defined by the issuer per unit.

The coupon rate is the annual interest a bond pays on its face value. For example, if a bond’s face value is ₹1,000 and its coupon rate is 10%, the investor earns ₹100 in interest each year.

The bond yield is the effective return earned, reflecting both the coupon payments and the purchase price, and serves as a key measure of attractiveness. It is important to note that purchase price can be the same or higher or lower than the face value of the bond.

Maturity is the date when a bond’s principal amount is fully repaid by the issuer to investors.

Bonds provide stable income, reduce overall portfolio volatility, and enhance diversification.

Government securities (G-secs), treasury bills (T-bills), corporate bonds, municipal bonds, and tax-free bonds.

Vs. Fixed Deposits (FDs): Bonds offer higher returns while FDs struggle to beat inflation. However, higher returns come with added risk.

Vs. Debt Mutual Funds: Bonds are direct, curated investments without over-diversification, helping preserve yields that debt MFs may dilute.

Vs. Equities & Equity MFs: Bonds provide stable, predictable cash flows and capital preservation for short–medium horizons, while equities suit long-term wealth creation but come with higher volatility. Bonds relatively carry lower risk than equities, gold, real estate and crypto.

The minimum investment begins at around ₹1,000, although some issuances may require higher amounts.

Yes. A Demat account is mandatory as bonds are held in electronic form.

Yes, you can sell your bond before maturity in the secondary market although liquidity is not as robust as the equity market.

When investing in bonds, credit ratings provide a standardized measure of the issuer’s financial strength and ability to repay debt, helping investors make informed decisions. Credit ratings are letter grades assigned by rating agencies such as Moody's, S&P, and Fitch. These ratings range from AAA (highest quality) to D (default). Investment grade bonds are defined to be between AAA and BBB-.

Here is a table summarizing the credit ratings:

To invest in bonds, you need a Demat and trading account. Bonds can be purchased through:

• RBI Retail Direct – for government bonds.
• SEBI-registered Online Bond Platform Providers (OBPPs) like Jiraaf – for a wide range of bonds.

The process is simple: complete your KYC, choose a bond, and pay online via UPI or net banking.

Yes, bonds carry several risks that can lead to losses. These include:

• Credit Risk: The issuer may default on payments.
• Interest Rate Risk: Bond prices fall when interest rates rise.
• Inflation Risk: Returns may not keep pace with inflation.
• Liquidity Risk: Difficulty in selling bonds quickly at fair value.

Bond interest is taxed as per your income tax slab. In addition to the interest income, bonds can also incur capital gains and losses if sold before the maturity. Listed Bonds, if held for 12 months or more, are treated as LTCG and taxed at 12.5% without indexation; otherwise, they are treated as STCG and taxed at the applicable slab rate.

Vs. Fixed Deposits (FDs): Bonds offer higher returns while FDs struggle to beat inflation. However, higher returns come with added risk.

Vs. Debt Mutual Funds: Bonds are direct, curated investments without over-diversification, helping preserve yields that debt MFs may dilute.

Vs. Equities & Equity MFs: Bonds provide stable, predictable cash flows and capital preservation for short–medium horizons, while equities suit long-term wealth creation but come with higher volatility. Bonds relatively carry lower risk than equities, gold, real estate and crypto.

Jiraaf, a SEBI-registered Online Bond Platform Provider (OBPP), makes bond investing easy and accessible through:

• Seamless Online Experience – A user-friendly platform that enables quick discovery and purchase of curated bond opportunities.
• Smart Filters – Investors can sort by credit rating, tenure, and yield to find opportunities that match their financial goals.
• Curated Choices – Every bond is carefully evaluated for quality and transparency, helping investors make informed decisions.
• Low Entry Point – With a minimum investment of just ₹1,000, Jiraaf makes bond investing accessible to everyone.

Whether you’re starting your first bond investment or diversifying your portfolio, Jiraaf makes the process simple, transparent, and convenient.

At Jiraaf, investor safety is a top priority. The platform ensures trust and transparency through:

• Regulatory Compliance – Jiraaf operates under SEBI’s Online Bond Platform Provider (OBPP) framework, ensuring full compliance with regulatory standards.
• Rigorous Due Diligence – Every bond opportunity undergoes a detailed evaluation of credit quality, returns, and maturity to match diverse investor goals.
• Risk Transparency – Clear disclosures outline all key risks and repayment details, empowering investors to make informed decisions.
• Cybersecurity & Fraud Prevention – Advanced systems safeguard data, monitor threats, and protect transactions from fraud or breaches.

While Jiraaf curates and vets' opportunities, investors are encouraged to review all details carefully and choose bonds aligned with their personal financial objectives.

Jiraaf offers a wide range of investment-grade listed bonds:

• Corporate bonds
• Government bonds
• High-yield bonds
• Low risk bonds
• Zero-coupon bonds
• Inflation-linked bonds
• Structured Debt Investments (SDIs)

These bonds cater to all types of customers across the risk spectrum and investment objectives.

Jiraaf makes bond investing simple and accessible through intuitive tools and resources:

• Smart Tools for Smarter Choices – The Bond Analyzer lets investors compare yields, credit ratings, and tenures side by side, helping them make informed decisions.
• AI-Powered Discovery – An innovative AI tool answers investor queries, simplifies bond discovery, and makes browsing seamless, especially for first-time investors.
• Comprehensive Bond Details – Every listed opportunity comes with complete information: borrower background, financial performance, yield, maturity, repayment schedule, and key attributes — all in one place.
• Investor Education – Through videos, blogs, and step-by-step guides, Jiraaf empowers investors to understand bonds better, from the basics to advanced strategies.