… the name is Bond, Corporate Bond
Protecting our savings from any kind of threat comes naturally to most of us. So when you decide to invest, you need to know all of your options in order to invest in the path that is best for you. In this article, we’ll explain why you should consider investing in debt securities.
So what are bonds?
Simply put, a bond is a debt instrument issued by companies to raise funds. When you buy a bond, you lend a certain amount to the company for a specified period in return for interest paid by the company. During the entire term of this obligation, you earn interest and at maturity, the company repays the capital.
Why invest in bonds?
Diversify your portfolio investing in bonds provides a balance between risk and return.
When you invest in bonds and decide to wait until maturity, your wealth neither appreciates nor depreciates. It is one of the best ways to preserve your heritage. However, you don’t have to wait until maturity, you can sell these bonds in the secondary market if you need liquidity. Unlike some deposits, bonds do not have a lock-in period. Note that this could have an impact on your invested value depending on the prices in the secondary market.
If you are looking for an investment option that saves you tax, you can invest in non-taxable bonds. Interest on these bonds is not taxable. Apart from that, there are certain tax saving obligations which come with a minimum lock-up period of 5 years.
When we talk about safe investments, bonds are definitely on the list. If you want to reduce your risk some bonds are backed by a security or collateral, if you invest in these bonds the chances of losing your money (in the rare event that the issuer defaults) are much lower.
Bond investments provide predictable cash flow. You know when and at what rate you are going to receive interest payments. It can help you plan for future spending and better manage your finances.
The interest rate on bonds is generally higher than the rate of inflation. Therefore, income from bond investments strengthens your purchasing power and serves as a hedge against inflation.
Now that you know the benefits of investing in bonds, let us explain why you should invest with SMEST capital:
SMEST is registered with SEBI, which means that compliance with all regulatory requirements issued by SEBI for investor protection is ensured.
Every detail you enter on their website is encrypted, which means all of your personal data and transactions are secure.
The primary concern when trading in secondary markets is to be offered a fair price for a particular bond. Smest offers the price history of each ISIN, which will make it easy for you to determine the fair price range for that ISIN.
If you are someone who manages the portfolio of family members then SMEST is the easiest portal for you. A single sign-on feature at SMEST allows you to manage your wallet and that of your family through one account.
You need to know who you are lending your money to. The transmitter analysis reports on SMEST give you all the details related to the performance of this transmitter, which will make it easier for you to judge the quality of the transmitter. SMEST provides you with all the information relating to each ISIN in one place. This includes the coupon rate, maturity date, collateral details, etc.
The Ask Smest forum is a page where you can find FAQs related to bond investments. If your question is not on the page, you can post it and expect a response in no time! This page also contains a bond glossary that will help you understand difficult terms used in the bond market.
SMEST also offers loyalty rewards to its customers. You earn loyalty points by buying, selling or sponsoring.
As a trader, you need to know everything about what is happening in the market on a daily basis. And no, you don’t have to read long articles to keep up to date. Smest’s Market Bulletin displays all of the important headlines of the day that are relevant to the debt market.
SMEST; a rare bootstrap startup whose mission is to digitize the functions of the debt market and educate retail investors to encourage participation. Their team works tirelessly to improve the customer experience by committing to serve them even after hours of operation through Ask-Smest. Their aim is to increase participation in the debt market, especially of the oblivious population of retail investors.
Punjabee hard, Founder and CEO of Smest, âThe advancement of the fixed income market is in its infancy and I believe we are at a point where, in the next few years, the debt market will experience a similar transformation. to that of the stock markets. in the 1990s. SMEST demonstrates our effort to facilitate transparency and ease of trading in fixed income securities. “