Get your credit score and credit report instantly for FREE!
1800 270 7000
Download
Insurances 
INVESTMENTS 
LOANS 
PAYMENTS 
QUICK SERVICES 
HEALTH INSURANCE 
PLAY STORE
APPSTORE
Health Insurance
Housing Finance
Life Insurance
Mutual Funds
Personal Insurance
SME Finance
Stock & Securities
Home LoanFind customised home loan solutions for your unique needs
Balance TransferFind a better interest rate for your existing home loan
Top up Home LoanGet a loan on your existing home loan to meet your needs
Loan Against PropertyTurn your assets into a financial ally
Personal LoanMeet all your dreams and needs with a collateral-free Personal Loan
Flexi LoanMake loan repayment flexible and hassle-free with Flexi Loans
Are you eligible for a Personal Loan? Find out now!
Calculate Now
Debt FundsDiversify your portfolio and reduce risk with Debt Funds
Equity FundsInvest smartly in Equity Funds to aim for higher returns
Hybrid FundsDiversify your portfolio and reduce your risk with a mix of equity and debt
Retirement FundsGoal-oriented fund with a lock-in period to create a corpus for retirement
Children’s FundsSecure your child’s financial future with solutions-oriented children’s funds
Exchange Traded FundsUnlock a smart, hassle-free way to invest in various assets
Fund Of FundsChoose the smart way to diversify risks and grow investments
Index FundsFollow the benchmark of smart investors to grow your wealth
Calculate wealth creation through lumpsum investment in Mutual Funds
Calculate Now
Equity TradingInvest or trade in equity for attractive returns and long-term capital growth
Margin Trading FacilityGet up to 5X leverage on leading stocks & increase your trading power
BondsGive your portfolio stability with attractive returns
Term InsuranceBring security and peace to life’s unpredictability
Retirement PlansGet a guaranteed regular pension plus lump sum on plan maturity
Savings PlansGet a guaranteed regular pension plus lump sum on plan maturity
ULIP PlansGet the benefits of insurance & wealth creation in one convenient plan
Find out how much life insurance you need with our Human Life calculator
Calculate Now
Health & Wellness PlansMake quality health care affordable and accessible
Super Top-up PlansGet extra coverage when you need it most
Life Insurance
Health Insurance
Mutual Fund
Home Finance
Personal Finance
Stocks & Securities
PLAY STORE
APP STORE
What are Bonds?
Bonds are debt instruments issued by entities looking to raise funds for their financial needs. Bonds carry a fixed interest rate which is called the coupon rate or simply the coupon. This interest provides investors with returns on investments.
Why invest in Bonds?
Secured returns
Bonds offer a fixed rate of return on investment through the coupon rate. The interest is paid at regular intervals.
Diversification
Bonds are debt instruments that add stability to your portfolio and help diversify it.
Liquidity
Bonds are listed on the stock exchange making them liquid. You can trade them on the exchange before their maturity date.
Tax benefit
If you invest in tax-free bonds you can save on the tax outgo on the interest income earned from them.
Value Subscription Plans
Trade 20
₹20/order Brokerage fee
(A minimum brokerage of Rs.20 per executed order will be charged subject to a maximum of 2.5% of the traded value. If the brokerage levied as a percentage on the value of the shares/contract is less than the agreed brokerage payable per share/contract, you will be charged the minimum rate of brokerage per share instead of the percentage)
-
Equity Intraday -
Futures
-
Options
-
Currency Futures
-
Currency Options
-
Commodity Futures
-
Commodity Options
Trade5
₹3999 + GST p.a. Brokerage fee
(A minimum brokerage of Rs.5 per executed order will be charged subject to a maximum of 2.5% of the traded value. If the brokerage levied as a percentage on the value of the shares/contract is less than the agreed brokerage payable per share/contract, you will be charged a minimum rate of brokerage per share instead of the percentage)
-
Equity Intraday
-
Futures
-
Options
-
Currency Futures
-
Currency Options
-
Commodity Futures
-
Commodity Options
RM Plan
0.03%/order Brokerage fee
(A minimum brokerage of Rs.20 per executed order will be charged subject to a maximum of 2.5% of the traded value. If the brokerage levied as a percentage on the value of the shares/contract is less than the agreed brokerage payable per share/contract, you will be charged the minimum rate of brokerage per share instead of the percentage)
-
Equity-Intraday
-
Equity Delivery
-
Equity Derivatives-futures
-
Currency Derivatives-futures
-
Commodity Futures
-
Commodity Options
-
₹35/lot Brokerage fee
-
Equity Derivatives-Options
-
Currency Derivatives-Options
Customer Satisfaction Stories
Don’t just take our word for it. Hear from our customers about their successful financial journey with us
Account opening process is very simple and steps mentioned in the process are user friendly. Guidance wherever required is excellent and prompt.
Aditya Birla Money Customer
Panvel, India
My trading experience with ABM has been very fruitful. I have always been receiving excellent support from my dealer. Moreover, the transparent business practices at ABM makes it the preferred broker in the industry.
Aditya Birla Money Customer
Mumbai, India
ABCD - One app to build a diversified investment portfolio
Invest in equity stocks or other securities listed on the market with the ABCD app. Get a completely convenient digital platform to trade effectively.
-
Invest in a few clicks and build your portfolio
-
One-stop platform for buying and selling stocks and securities
-
Invest or redeem at your discretion without any restriction
PLAY STORE
APP STORE
Scan the QR code to download our Mobile App
Table of Contents
What are bonds?
Bonds are debt instruments which are issued by entities eyeing to raise funds. They offer investors guaranteed returns in the form of interest payouts. Bonds are also listed on the stock exchange allowing investors the flexibility to trade them before their maturity dates.
What are the features of bonds?
-
Bonds have a specified maturity date
-
The coupon rate is the interest payable on bonds
-
The face value of the bond represents its issue price
-
You can buy and sell bonds through your Demat account
-
You might also earn capital gains by selling bonds at a higher price
Who are the primary issuers of bonds?
- Government
- Municipal corporations
- Companies or corporations
What are the different types of bonds?
-
Sovereign Gold Bonds
Bonds issued by the RBI against gold. It offers guaranteed returns and also helps you gain from the growth in gold price.
-
Callable bonds
Bonds that can be redeemed before maturity at the issuer’s discretion.
-
Puttable bonds
Bonds that can be redeemed before maturity at the investor’s discretion.
-
Fixed-rate bonds
Bonds whose coupon rates remain fixed over the bond tenure.
-
Corporate bonds
Bonds issued by companies are called corporate bonds.
-
Zero-coupon bonds
Bonds that do not offer any interest but are issued at a discount and redeemed at face value.
-
Asset-backed bonds
Bonds that are backed by an asset of the issuer and are safer than regular ones.
-
Floating rate bonds
Bonds whose coupon rates change over the bond tenure.
How do bonds yield returns for investors?
Interest income
You get interest at the coupon rate at regular intervals during the bond tenure.
Capital gains
If you buy the bond at a lower price and sell at a higher price, you earn capital gains on the sale of the bond..
Invest in exchange-listed passive MFs
-
Cost-effective ETFs
-
Enjoy professional fund management
Equity Funds for diversification
-
Various equity funds
-
Tax benefits on capital gains
FAQs on Bonds
Bonds are the financial instruments which are issued by government agencies, large corporations and financial institutions, secured by physical assets or collaterals whereas debentures are unsecured debt instruments issued by private or public companies with pre-specified terms and conditions without any collateral. Debentures are a type of bond. Any unsecured bond without collateral is a debenture. In that sense, all the bonds cannot be debentures, but all debentures are bonds.
Bond yield is the return on bond investment which an investor expects to earn each year over its term to maturity. Bond yield is the effective interest rate on bonds calculated by dividing the coupon amount by the price of the bond.
A Bond Certificate is a legal document provided to the investor at the time of purchase establishing the title of the Bondholder/investor to the Bonds specified therein. It states the face value, unique identification number for the bond certificate, name of the issuer, maturity date, interest rate and terms of the debt agreement.
Yield to Maturity (YTM) is the effective return you will get if you hold a bond till its maturity date. On the other hand, Yield to Call (YTC) is the effective return calculated on callable bonds until its callable date, when the issuer has the option to call back the bond.
Non-resident Indians (NRI) can invest in government securities (G-Secs), treasury bills (T-bills) and state development loans (SDLs) directly through the retail direct platform of the Reserve Bank of India.
NRIs cannot invest in sovereign gold bonds. However, if NRIs have already invested in these bonds before acquiring NRI status, they can hold it till maturity or early redemption.