Investment in Bonds

In order to better analyze the financial markets for investing in bonds (assets), it is important to know about bonds in India. When people generally talk about trading and investment options in India, the first thing that comes to mind will be the bonds market. For example, the Dow Jones Industrial Average rising and falling, or a company's stock going up and down always gets people excited. However, when you ask people about government bonds in India , most will know very little about them. This is despite the fact that the bond market in the India is several trillion dollars larger than the India stock market. There are several reasons for this lack of knowledge about bonds investment in India. One reason could be that bonds appear uninteresting as the prices may not change as fast as stock prices and it is more difficult for most people to make a quick buck like buy bonds in india as well buy bonds online from BondsIndia. Are we affected by what is happening in the bonds market...

What are investment in Zero coupon bonds?   Zero Coupon bonds in India that do not pay interest during the life of the bonds. Buy Zero Coupon bonds at a discount and they will fund the face value at maturity. A portion of the funds at maturity will be accumulated interest (the discount) and the original amount of the purchase price of the coupon. At maturity when a zero coupon bond investment matures, the investor will receive one lump sum equal to the initial investment plus interest that has accrued. The maturity dates on zero coupon bonds can vary and usually the time period for Zero Coupon bonds in India are a longer time period. Often these maturity periods may be 15, 20 years or more. Investors can purchase zero coupon bonds in the secondary bond markets that have been issued from a variety of sources, including the Indian Treasury, corporations, and state and local government entities. How Zero Coupon Bonds work in India? How Zero Coupon Bonds work in India? Investment...