Frequently Asked Questions

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About GoldenPi

Why should I invest in Bonds and Debentures?


Bonds and Fixed Deposits are both considered relatively low-risk investment options. However, bonds may offer certain advantages:
  • Potentially higher returns – Depending on the issuer and credit rating, some bonds may offer better coupon rates than traditional Fixed Deposits.
  • Tradability and liquidity – Listed bonds can be bought and sold on stock exchanges, which may provide greater liquidity compared to FDs, which are generally locked in until maturity.
  • Tax benefits on specific bonds – Certain notified bonds, such as those under Section 54EC (e.g., NHAI, REC, PFC, IRFC), allow exemption from capital gains tax under specific conditions.
However, interest earned on most bonds is taxable unless the bond is specifically notified as tax-free.