Investment in Bonds

  I know that in order to get the most out of my money, I need to make it work for me. That means investing in something that will generate a decent rate of return. The problem is that I’m extremely risk-averse. I do not want to lose my initial investment, and am willing to accept a lower profit in order to protect my money. That’s why I think   tax free bonds   are the perfect instrument for me. Investment in Tax free  b onds  are usually ones issued by local governments. Generally called a municipal bond, cities or townships might sell these investment instruments in an effort to raise money for a specific cause. Know  how to invest in tax free bonds in India   as well   you can  buy tax free Bonds in India .  For example, my local government has offered  tax free bonds in India  to build a new sports facility at the public high school and to cover daily operations when there are budget shortfalls. How to buy Tax Free Bonds O...

Government Bonds India  are supposed to be among the  s afest investments in India  in which was why they skyrocketed in late 2008 when there was panic in the stock market. In the popular documentary series "The Ascent of Money", Niall Ferguson, a respected British economist and historian, went back into history to the times when  government bonds  have gone bust before and explained the reasons why it happened and the subsequent consequences. He used Argentina as an example. Starting from 1975, the  Indian government had to sell a lot of bonds  to raise money to fund 2 wars. The government debt became so large that people lost faith that the government could pay the debt back and nobody wanted to  buy the government bonds , causing the bond yield (interest) to be very high. In order to be able to service the interest payment, the government had to keep printing more money and that caused hyper inflation. By December 2001, the government finally ...