Bonds Maturing after 5 Years (Long Term)

Features of Bonds For Long Term Investment

Long term bonds are debt securities with a tenure exceeding five years. Government bonds, corporate bonds, zero coupon bonds, sovereign gold bonds, and many more fall into the long term investment category.

Suitable for Investors with Low to Moderate Risk Tolerance

Bonds for long term investment generate periodic fixed returns throughout the tenure and the principal amount at maturity. These are ideal for investors who are trying to accumulate capital for long-term financial goals without taking much risk.

Higher Yields than Short-Term Investments

An investment in long term bonds can yield higher interest rates than short-term bonds.

Liquidity

The liquidity of long term bonds depends on the issuer. For example, government bonds enjoy high liquidity due to their great demand in both primary and secondary markets.

Credit Ratings

Credit rating agencies like CRISIL, ICRA, CARE and IND offer reliable ratings for bonds based on various crucial factors. Each long term bond has these ratings and anything above A indicates the best bonds for long term investment in terms of default risk.

Benefits of Bonds For Long Term Investment

• Steady Income Generation: With fixed interest payouts over a long tenure, long term bonds offer a stable income generation opportunity

• Balancing Portfolio Volatility: Long term bonds can aid in balancing the risk levels or volatility of other risky investments in a financial portfolio. Thus, they provide a cushion during market turbulence.

• Capital Appreciation Potential: When interest rates are falling, the price of long term bonds can increase, creating capital appreciation potential.

• Less Requirement for Active Management: Once the investment in long term bonds has been made, it will continue generating payouts at predecided intervals without requiring further actions from investors.

Credit Rating of Bonds For Long Term Investment

The following sequence will give you a comprehensive understanding of the different credit ratings long term bonds receive from CRISIL, ICRA, IND, CARE and other credit agencies.

These ratings are based on a thorough evaluation of important factors like asset quality, earnings, capitalisation, liquidity, market position, management profile, and resource profile.

• AAA: highest degree of safety, lowest credit risk

• AA-, AA, AA+: high degree of safety, very low credit risk

• A-, A, A+: adequate degree of safety, low credit risk

• BBB-, BBB, BBB+ : Moderate degree of safety, moderate credit risk

• BB: Moderate risk of default

• B-, B, B+: high risk of default

• C: very high risk of default

• D: In default or expected to be in default

Investing in Bonds For Long Term Investment

Get access to the best-rated long term bonds and enjoy a smooth investment experience with GoldenPi. Here’s how!

• Step 1: Land on the GoldenPi portal and sign up with a single click.

• Step 2: Check out the wide variety of long term bonds and take your pick.

• Step 3: Finalise the purchase and enjoy the benefits!