Invest in Stability with Corporate Bond Funds

Earn consistent returns with low-risk, high-quality corporate bonds. A smart choice for stable growth.

What Is a Corporate Bond?

A corporate bond is a type of debt security that is issued by a firm and sold to investors. The company gets the capital it needs and in return the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate. When the bond expires, or "reaches maturity," the payments cease and the original investment is returned. The backing for the bond is generally the ability of the company to repay, which depends on its prospects for future revenues and profitability. In some cases, the company's physical assets may be used as collateral.

Benefits of Corporate Bonds

Inflation Protection

Corporate bonds offer better protection from inflation and rate hikes than traditional bonds.

Higher Returns

They provide more attractive returns over government bonds with lower risk exposure.

Low Risk

They serve as stable, less volatile investment tools for wealth preservation.

Diversification

Add depth to your portfolio with a broad range of corporate securities across industries.

Types of Corporate Bonds

Convertible Bonds

You can convert these bonds into predefined stocks at your disposal. If at any point in time, you feel that stocks are likely to give you better returns than bonds, you can convert them into shares.

Non-Convertible Bonds

As the name suggests, these bonds cannot be converted into stocks. These will be plain bonds purchased from a corporation for some time.

Conclusion:

Corporate bonds are a low-risk investment if you are looking for a short-term investment tool. They offer higher returns compared to government bonds. Before you invest in a corporate bond fund, weigh the risks carefully.