Key Factors to Consider When Investing in Bonds in India

In India, bonds are categorized based on credit rating, tenure, and interest type, among other factors. Credit ratings by SEBI-registered agencies like CRISIL indicate the risk level, with investment-grade bonds (BBB- and above) suited for conservative investors and lower-rated bonds offering higher yields for aggressive investors. Bond tenure should align with financial goals, and interest rates may be fixed or floating, affecting payment frequency and returns. Investors should consider these parameters to match bonds with their risk profiles and investment objectives.