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A moderate investor typically strives to strike a balance between returns and risk. Such individuals seek higher returns than conservative investors, but only at a level of risk that they find acceptable. Moderate risk-takers may also choose to invest in AAA-rated private or lower-rated papers.
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This is a listed and N/A bond
Tier 1 and Tier 2 Bonds are issued by Banks and some NBFCs. These bonds are perceived to be risky investments, irrespective of their credit ratings.
Tier 1 Bonds are higher in risk than Tier 2 Bonds. Hence they pay higher coupons.
In extreme cases, if a Bank reaches a point of non-viability (PONV), RBI can instruct to write off the Tier 1 and Tier 2 Bank Bond papers in full.
In such extreme cases, bond holders will not receive any outstanding interest and principal investment money back.
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