Bonds and NCDs

Comparison with Fixed income instruments - Bonds vs. PPF vs. FDs vs. ETF.


Here are a few Fixed Income Instruments.

Bonds: They are pure fixed-income investment options. They come with a fixed annual return and fixed maturity period.

Public Provident Fund: PPF is a saving scheme offered by the Central Government.

Fixed Deposits:These instruments are offered by banks and non-banking financial organizations that return fixed interests.

Exchange-Traded Funds: ETFs consist of a set of underlying securities and manage market fluctuation. They have passively managed funds and have low volatility.

All fixed income instruments fall into the category of low-risk instruments. ETFs have no maturity and have low volatility. The maximum amount that can be invested in PPF is 1.5 lakhs. FDs are not tradable.
Whereas Bonds have fixed maturity, there is no limit on investment amount and are tradable.