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Invest in Zero-Coupon Bonds to achieve your long-term financial goals. It can diversify your portfolio and help make a good investment.
A zero-coupon bond is a debt instrument wherein the issuer does not make any coupon payment but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full-face value.
A zero-coupon bond will usually have higher returns than a regular bond with the same maturity because of the shape of the yield curve. It can help an investor create corpus to meet various financial goals.
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Investors often compare zero coupon bonds with other fixed income options so as to check in for minimal risks. The returns on zero coupon bonds are good enough at maturity and the option always remain to sell them in the secondary market, if the interest rates decline intensely.
Another significant feature of zero-coupon bonds is that interest income is free from taxation since the bonds are issued at a discount rate and get redeemed at face value. They only attract capital gains tax.
Unlike other bonds types, Zero-Coupon Bonds provides many advantages to the investors. Zero-Coupon Bonds is a good source to accumulate a fund to meet varied domestic or professional needs. It has no reinvestment risk and offers fixed returns.
Zero-Coupon Bonds are a relatively safe tool for risk-free interest income. The municipal zero-coupon bonds can help you save tax on the interest income.
Zero-Coupon Bonds don’t offer regular interest. Instead, the earned interest is accumulated and paid at the maturity. It thus helps create funds that can help meet your long-term goals.
Zero-Coupon Bonds facilitates the reliable source for fixed returns provided you keep our investment until maturity. A fixed return can be earned without worrying of the market chaos.
Zero-Coupon Bonds helps you avoid reinvestment risks. With Zero-Coupon Bonds there is no periodic coupon payment. It thus proves to be a useful instrument for a fixed income.
Zero-Coupon Bonds don’t offer regular interest. Instead, the earned interest is accumulated and paid at the maturity. It thus helps create funds that can help meet your long-term goals.
Zero-Coupon Bonds facilitates the reliable source for fixed returns provided you keep our investment until maturity. A fixed return can be earned without worrying of the market chaos.
Zero-Coupon Bonds helps you avoid reinvestment risks. With Zero-Coupon Bonds there is no periodic coupon payment. It thus proves to be a useful instrument for a fixed income.
Investing in zero coupon securities can be a good decision for many of the investors. The need is to take a wise decision after consulting an investment expert.
Zero coupon securities are ideal for investors interested in long-term investment, planning for children education or marriage, retirement, and property purchases.
Thus, zero coupon bonds in comparison to other fixed income instruments offer better return on maturity.
Zero coupon bonds are a type of bonds that do not pay you periodic interest. It trades at a deep discount and is useful for investors who are not in the need for an interest income at a fixed interval. Your investment in zero coupon securities is safe. Also, the returns you earn in this type of bond can be beyond your expectation.
Let us understand with an example - what is zero coupon bond? and how it is beneficial for you. You may be required to pay Rs. 3500 to buy a zero-coupon bond of 20 years having face value of Rs. 10000. This 6500 is your profit/benefit that you can earn by choosing to buy the above zero-coupon bonds.
Browse through our product section to learn about Zero coupon bond India, the upcoming issues, bonds, and other news in trends. You can simultaneously explore our product section to learn more about bonds and other investment products. Do remember that a zero-coupon bond is also termed as an accrual bond.
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Zero coupon bonds are known to trade at a deep discount. Zero coupon bonds in India do not pay periodic return but offers a competitive rate of return.
BondsIndia gives you many good reasons to choose it for the potential trade in bonds. Easy access, quick navigation, access to India’s biggest bonds library, secure, and hassle-free access to BondsIndia online platform.
Zero coupon bonds are considered comparatively a safe source for fixed income and good return on maturity.
Zero-coupon bond help you create corpus for long-term goals like education and marriage of children, retirement, and more.
The amount to be invested in zero coupon securities can be decided considering risk and reward capacity and other factors. Consulting an investment expert at BondsIndia is a good idea.
Zero coupon bond is subject to risk related to interest rate. Some zero-coupon bonds are also inflation indexed.
Zero coupon bond generally have the maturity period of 10, 15, or more years.
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