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A Reliable Path to Consistent Returns

Shield your wealth from market volatility by investing in stable, fixed-income opportunities. Our curated selection of bonds provides regular interest payouts, offering a low-risk, sustainable approach to building a strong financial foundation for the future.

Earn returns higher than traditional bank FDs with investments starting as low as ₹5,000. Our fixed-income offerings provide a stable, better alternative for investors seeking reliable growth and a steady income stream.

Take the first step towards your financial security with SteadyAsset’s Fixed-Income Investments.

Fixed Income
Fixed Income

Invest in Bond IPOs with SteadyAsset

Unlock superior returns with SteadyAsset—invest in bond IPOs online and elevate your financial growth.

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Upgrade Your Portfolio with Fixed-Income Solutions

Corporate Bonds

Support leading companies while securing predictable interest payments and principal repayment at maturity.

Higher Yields

Consistent Income

Facilitates Corporate Growth

Government Bonds

Invest in sovereign bonds, renowned for their security and stability, especially during market fluctuations.

Minimal Risk

Steady Returns

Reliable in Uncertain Markets

Gold Bonds

Combine gold’s value with the stability of fixed-income assets, creating an inflation-protected addition to your portfolio.

Inflation Hedge

Steady Returns

Strategic Diversification

How Fixed-Income Investments Work

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Select Your Investment

Choose from a tailored list of top-quality bonds aligned with your financial objectives.

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Invest with Ease

Enjoy a seamless, secure investment process with transparent fees and no hidden costs.

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Receive Regular Income

Benefit from predictable, consistent income through scheduled interest payouts.

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Monitor Your Investment

Stay informed on your portfolio’s performance with regular, accessible updates.

Frequently Asked Questions

The fixed income market offers sustainable returns, with bonds yielding as high as 9–10% per annum, often outperforming traditional fixed deposits in terms of both reliability and growth potential. Bonds and debentures provide key benefits, including low to minimal risk (especially with AAA to A-rated bonds), capital appreciation, regular income, tax-efficient options, and even tax-free income in certain cases. Through SteadyAsset’s streamlined investment platform, you now have access to bonds previously exclusive to large corporations, family offices, and high-net-worth individuals (HNIs), opening new avenues for secure and rewarding growth.

Both bonds and fixed deposits (FDs) are low-risk investments, but bonds offer several advantages:

  • Higher Returns: Bonds typically offer higher interest rates compared to FDs.
  • Liquidity: Bonds are tradable in the open market, while FDs lack this flexibility.
  • Tax Efficiency: Bonds come with additional tax advantages, including potential savings on capital gains and benefits on interest income, which FDs do not offer.

Choosing bonds over FDs can enhance both your returns and financial flexibility.

Fixed Deposit (FD) interest rates are generally lower than bond yields due to several regulatory and operational factors. Banks are required by the central bank to maintain a Cash Reserve Ratio (CRR), holding a portion of the capital they receive from FDs in reserve, limiting the amount they can lend. This reserve also allows them to meet early withdrawal requests from FD holders. However, funds raised via bonds aren’t subject to these constraints, enabling banks to utilize all capital raised through bonds more freely.

Additionally, bond issuances are capped, with only a fixed amount available in each bond tranche, allowing issuers to calculate the total interest payable accurately. To attract investors, bond issuers set interest rates higher than those of FDs. Since banks can accept unlimited deposits, servicing high interest on an ever-growing FD base would be impractical. Therefore, bonds generally offer higher returns than FDs due to these structural and regulatory differences.

Bonds are debt instruments issued directly by corporations or government entities for a set period, providing a fixed return. Debt Mutual Funds, on the other hand, are funds that pool investor money to invest in a range of debt securities, including bonds, debentures, commercial papers, and other fixed-income assets. Investing in Debt Mutual Funds is an indirect way to access bond investments, offering broader diversification. However, for investors with fixed-income goals, direct investment in bonds can be preferable, as it typically provides more stable returns compared to the variable nature of Debt Mutual Funds. Refer to the table below: it reads the differences between Bonds and Debt Mutual Funds.

Bonds VS Debt Mutual Funds

Criteria Bonds & Debentures Debt Mutual Funds
Fixed Returns 100% Fixed Till Maturity of Bond Volatile-Investor exposed to Mark to Market Risk
Level of Returns Better returns that are fixed.
AAA-7.5%-8%, AA-9%-11%, A- 10%-12% (approx.)		 90% of Debt Mutual Funds give lower returns than this
Taxation benefits More efficient:
STCG: 12 months, at income tax slab
LTCG: More than 12 months, flat 10%		 Less efficient:
STCG: 36 months, 31.2%
LTCG: More than 36 months, 20% with indexation
Functional Advantage Interest payments hit Investor's Bank Account on prescheduled dates. No hassle. No gains/income till MF is sold. Most investors don't know when to sell or miss the chance. Their MF Advisors never advise them when to sell.
Transparency Investor has all details of issuer and issue. Aware of risk levels clearly. Complete blackbox. Impossible for retail investor to check and examine MF portfolio of debt.

Bonds are fully tradable securities, which means there is generally no lock-in period on bond investments. If you wish to exit your investment before the bond’s maturity date, you have the option to sell it on the secondary market. This provides flexibility, allowing investors to access their funds when needed. However, it's important to note that the selling price on the secondary market may fluctuate above or below the bond’s par value, depending on current market conditions and interest rates.

If you wish to sell bonds prior to their maturity, you can list them for sale on the Bombay Stock Exchange (BSE) or the National Stock Exchange (NSE), where bonds are actively traded. Additionally, SteadyAsset provides support for such transactions. By reaching out to our team, you can receive guidance and assistance in executing the sale, ensuring a seamless process tailored to meet your financial needs.

Advantages of investing in Bonds

Yes, fixed-income instruments, including Bonds, Fixed Deposits (FDs), Public Provident Fund (PPF), and Exchange-Traded Funds (ETFs), generally fall into the low-risk category, offering a sustainable way for investors to grow their wealth with minimal risk.

Unlike Bonds, which have a fixed maturity period, ETFs are open-ended without a set maturity date and generally experience lower volatility. Bonds provide a clear timeline for returns, making them ideal for investors who prefer a specific investment duration.

No, Bonds have no upper limit on investment amounts, which allows investors to scale their investments based on their financial goals. In contrast, the PPF restricts annual investments to a maximum of ₹1.5 lakhs.

Yes, Bonds are tradable securities, allowing investors to sell them in secondary markets before maturity if needed, providing flexibility and liquidity. This is unlike Fixed Deposits (FDs), which are not tradable and require a penalty for early withdrawal.

Bonds combine fixed maturity, tradability, and no limit on investment amounts, making them a versatile option within the fixed-income space. These features give investors flexibility, potential for capital growth, and control over their investment timelines.

Bond Terminologies

The capital market, where companies or governments raise funds by directly issuing securities (whether debt or equity-based), is known as the Primary Market. Here, the issuer offers securities at set prices to buyers, which may include financial institutions, corporations, mutual funds, and individual investors.

The Secondary Market, on the other hand, is where investors trade these securities among themselves. Trading occurs between financial institutions, individual investors, or both, with no involvement from the original issuer. In the Secondary Market, security prices are influenced by current demand and supply conditions.

For more information on bond-related terms, visit our Bond Glossary.

The Face Value of a bond is the original issue price set by the bond issuer per unit. This is typically the amount the issuer promises to repay at maturity. The Market Price is the current trading price of the bond, which may fluctuate above or below its face value based on demand and supply factors in the market.

When buying a bond, the Investment Amount is the actual cost to the investor, comprising the Market Price plus any Accrued Interest (interest earned by the bond between coupon payment dates up to the purchase date). This is the total amount an investor pays to acquire the bond.

The Coupon Rate is the fixed interest rate that a bond or debenture pays annually, based on its face value. This amount is set by the bond-issuing company and paid to the bondholder regularly, typically on an annual or semi-annual basis.

The Yield represents the effective interest rate earned on a bond, taking into account its current market price rather than its face value. Unlike the coupon rate, the yield can fluctuate: it varies inversely with the bond's market price. If the market price of a bond decreases, the yield rises, and if the market price increases, the yield falls. Yield provides a more accurate reflection of the bond's current return based on market conditions.

Yield= (Coupon/ Market Price of Bond) X 100

Coupon and Yield are explained here in 'Bond Glossary.'.

Bonds are traded on the secondary market, and their trading price can fluctuate from the bond's par value (the original issue price set by the issuer). When the market price of a bond falls below its par value, it is referred to as the Discounted Price. Conversely, when the market price is above the par value, it is called the Premium Price. These variations reflect the bond’s demand in the market, influenced by factors like interest rates and economic conditions. Buying at a discount or premium can impact the bond’s yield and potential returns.

Senior Bonds and Subordinated Bonds differ primarily in their order of priority for repayment during liquidation. Senior Bonds hold a higher claim in the hierarchy of repayment; if a bond-issuing company faces liquidation, senior bondholders are paid first. This priority makes Senior Bonds lower-risk investments. On the other hand, Subordinated Bonds (or junior bonds) have a lower priority for repayment, only being paid after senior obligations are met. Due to the higher risk, subordinated bonds generally offer higher returns to compensate investors for this additional risk level.

Secured Bonds are backed by collateral, such as an asset or future cash flows of the issuer. In case the issuer defaults, bondholders have the right to claim these collateral assets or revenue sources. Unsecured Bonds, however, do not have any backing by collateral. If the issuer defaults, holders of unsecured bonds cannot claim any of the issuer's assets. Investment in unsecured bonds is generally based on trust in the issuer’s creditworthiness and track record. In bankruptcy situations, secured bonds are prioritized for repayment over unsecured bonds.

Tier I Bonds, also known as Perpetual Bonds, theoretically have no maturity date and can continue indefinitely as per BASEL III norms. However, they typically include a call option that allows the issuer to redeem the bonds after five or ten years. Banks commonly use Tier I Bonds to raise core capital (Tier 1 capital) to comply with the Reserve Bank of India’s (RBI) requirements.

Tier II Bonds are also issued under BASEL III guidelines, helping banks meet capital adequacy standards. These bonds are subordinated debt, meaning they carry a lower claim in the event of liquidation and are repaid after Tier I Bonds but before equity holders.

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