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What are Government Bonds?

Average returns7.26%

Average Yield7.14%

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What are Government Bonds?

Government bond in India is essentially a contract between the issuer and the investor, in which the Government (issuer) guarantees repayment of principal along with interest-earning at the maturity date.

Government bonds, known for their stable nature and guaranteed by the issuing government, are considered low-risk investments. With fixed interest rates, they serve as a funding tool for governments to support initiatives like infrastructure development, social programs, and various expenses.

Best Government Bonds for your investment

Top Bonds

Coupon(%)

Rating

Yield(%)

KARNATAKA STATE FINANCIAL CORPORATION

KARNATAKA ...
INE549F08509

Price
₹ 1,000,000

Coupon
9.24%

Rating
AA-

Yield
15%

WEST BENGAL STATE ELECTRICITY DISTRIBUTION COMPANY LTD

WEST BENGA...
INE411L07023

Price
₹ 1,000,000

Coupon
9.34%

Rating
A-

Yield
14.26%

RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LTD

RAJASTHAN ...
INE572F11067

Price
₹ 500,000

Coupon
0%

Rating
A

Yield
13.36%

HARYANA VIDYUT PRASARAN NIGAM LIMITED

HARYANA VI...
INE535N08064

Price
₹ 1,000,000

Coupon
8.62%

Rating
A+

Yield
11.136%

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

ANDHRA PRA...
INE01E708032

Price
₹ 200,000

Coupon
10.32%

Rating
A+

Yield
10.85%

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

ANDHRA PRA...
INE01E708016

Price
₹ 200,000

Coupon
10.32%

Rating
A-

Yield
10.66%

RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LTD

RAJASTHAN ...
INE572F09202

Price
₹ 1,000,000

Coupon
8.65%

Rating
A-

Yield
10.5%

TAMIL NADU GENERATION AND DISTRIBUTION CORPORATION LIMITED

TAMIL NADU...
INE340M08137

Price
₹ 1,000,000

Coupon
9.2%

Rating
A

Yield
10.33%

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

ANDHRA PRA...
INE01E708040

Price
₹ 200,000

Coupon
10.32%

Rating
A+

Yield
10.28%

ANDHRA PRADESH CAPITAL REGION DEVELOPMENT AUTHORITY

ANDHRA PRA...
INE01E708024

Price
₹ 200,000

Coupon
10.32%

Rating
A+

Yield
10.21%

GREATER HYDERABAD MUNICIPAL CORPORATION

GREATER HY...
INE477Z08014

Price
₹ 1,000,000

Coupon
8.9%

Rating
AA

Yield
10.2%

RAJASTHAN RAJYA VIDYUT PRASARAN NIGAM LTD

RAJASTHAN ...
INE572F11257

Price
₹ 500,000

Coupon
0%

Rating
A-

Yield
10.15%

UP POWER CORPORATION LIMITED

UP POWER C...
INE540P07335

Price
₹ 1,000,000

Coupon
10.15%

Rating
AA-

Yield
10.1%

RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED

RAJASTHAN ...
INE891F08026

Price
₹ 1,000,000

Coupon
8.74%

Rating
A+

Yield
10.07%

UP POWER CORPORATION LIMITED

UP POWER C...
INE540P07236

Price
₹ 1,000,000

Coupon
9.75%

Rating
AA-

Yield
10%

Best Government Bonds for your investment

Rating
All BondsIndia

Coupon(%)
All  BondsIndia

Yield(%):
All  BondsIndia

KARNATAKA STATE FINA...
INE549F08509

Price
1,000,000

Coupon
9.24%

Yield
15%

Rating
AA-

WEST BENGAL STATE EL...
INE411L07023

Price
1,000,000

Coupon
9.34%

Yield
14.26%

Rating
A-

RAJASTHAN RAJYA VIDY...
INE572F11067

Price
500,000

Coupon
0%

Yield
13.36%

Rating
A

HARYANA VIDYUT PRASA...
INE535N08064

Price
1,000,000

Coupon
8.62%

Yield
11.136%

Rating
A+

ANDHRA PRADESH CAPIT...
INE01E708032

Price
200,000

Coupon
10.32%

Yield
10.85%

Rating
A+

ANDHRA PRADESH CAPIT...
INE01E708016

Price
200,000

Coupon
10.32%

Yield
10.66%

Rating
A-

RAJASTHAN RAJYA VIDY...
INE572F09202

Price
1,000,000

Coupon
8.65%

Yield
10.5%

Rating
A-

TAMIL NADU GENERATIO...
INE340M08137

Price
1,000,000

Coupon
9.2%

Yield
10.33%

Rating
A

ANDHRA PRADESH CAPIT...
INE01E708040

Price
200,000

Coupon
10.32%

Yield
10.28%

Rating
A+

ANDHRA PRADESH CAPIT...
INE01E708024

Price
200,000

Coupon
10.32%

Yield
10.21%

Rating
A+

GREATER HYDERABAD MU...
INE477Z08014

Price
1,000,000

Coupon
8.9%

Yield
10.2%

Rating
AA

RAJASTHAN RAJYA VIDY...
INE572F11257

Price
500,000

Coupon
0%

Yield
10.15%

Rating
A-

UP POWER CORPORATION...
INE540P07335

Price
1,000,000

Coupon
10.15%

Yield
10.1%

Rating
AA-

RAJASTHAN RAJYA VIDY...
INE891F08026

Price
1,000,000

Coupon
8.74%

Yield
10.07%

Rating
A+

UP POWER CORPORATION...
INE540P07236

Price
1,000,000

Coupon
9.75%

Yield
10%

Rating
AA-

Types of Government Bonds

You might be wondering, “How many types of bonds are available in India” in which you can invest?

There are many types of bonds in India depending on the issuer, coupon rates and tenure. Depending on the bond issued, bonds come with varying interest rates and risks.

Fixed-rate bonds are financial instruments that guarantee investors a set interest rate throughout the bond's duration, resulting in regular interest payments until the bond matures.

Sovereign Gold Bonds (SGBs) are investment options offered by the Government of India, allowing individuals to invest in gold without the need for physical ownership or storage. These bonds provide a convenient paper-based form of gold investment.

Inflation-indexed bonds, referred to as inflation-linked bonds, are investment vehicles where the principal and interest payments adapt according to fluctuations in the inflation rate. These bonds safeguard against inflation by preserving the investment's value in line with increasing prices.

The RBI 7.75% Savings Bonds are a secure investment option suitable for both new and risk-averse investors who seek consistent and reliable returns while avoiding significant risks.

Government Bonds with call or put options are financial instruments that offer the issuer or investor the ability to exercise certain rights pertaining to the bond before it reaches its maturity date.

A bond with a call option provides the issuer with the privilege to repay or "call back" the bond before its designated maturity, while a bond with a put option allows the investor to sell the bond back to the issuer prior to its maturity.

Zero coupon bonds, also called discount bonds, are financial assets that do not offer regular interest payments to bondholders. Rather, they are issued below their face value and generate returns for investors as their value appreciates over time.

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How to invest in Government Bonds

Investment in Bonds can be done in a few easy steps with Quick KYC, Bond Selection and a convenient payment gateway.

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Features of Government Bonds
  • Low Default Risk.
  • These bonds are be either fixed rate or may carry a floating rate of interest.
  • Comparatively Low Returns.
  • Governments bonds can be used as a collateral loan against borrowings on a short-term basis in the repo market. These can be exchanged for cash along with a repurchase agreement of the bond in the future specified date at the end of the contract. You can buy government bonds to earn stable return and enjoy the benefit of capital preservation.
  • Bidding through RBIs e-Kuber platform for accessing the government securities market (both primary and secondary) through the RBI’s Retail Direct.
  • Safety: Govt securities are considered to be one of the safest investment options as they are backed by the credit of the government.
  • Liquidity: Government bonds are highly liquid and easily traded on the stock exchange.
  • Tax Benefits: Some government bonds, such as capital gains bonds, offer tax benefits to investors.
  • Investment Size: Government bonds can be purchased in denominations as low as Rs. 1000, making them accessible to small investors.

Frequently Asked Questions

A government bond is a financial instrument issued by the Government of India to fund its activities or initiatives through borrowing.
Investing in Government Bonds is a seamless process: open an account with a reputable broker, select the desired bonds, place an order, and diligently monitor your investments.
Some of the popular Government Bond are Sovereign Gold Bonds, SDLs (State Development loans), Municipal Bonds, Zero–Coupon Bonds, and Treasury Bills.
Yes, Government Bonds come with the sovereign Guarantee, which is a kind of assurance given by the Government of India to repay the principal amount and fulfil interest payments. 
Some Bonds issued by the Government and Public sector companies provide tax benefits to the investor. But the interest income earned from these Bonds is not subject to income tax.
The RBI( Reserve Bank of India) issues Government Bonds India.

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