Corporate Bond: Everyone wants to invest only in risk free places, but not everyone is satisfied with the low returns they get. The biggest reason for this is that nowadays banks, post offices and LIC are not getting much returns. But, if you are ready to take a little risk, then you can invest in such a thing which can give you better returns. This option is Corporate Bond. Let us tell you that there is little risk in this bond but, its returns are also very good.
What is Corporate Bond
Let us tell you that many times companies issue their corporate bonds instead of taking loans from banks to meet their expenses. With this money, she also meets short term expenses like capital, advertising and insurance payments. The government also keeps on issuing such bonds from time to time. But, it is more beneficial to invest in corporate bonds than government bonds. It gives good returns.
How to invest in Corporate Bonds
Let us tell you that whenever you invest in any corporate bond, take special care to avoid putting all your money in one place. Put some money everywhere. You can get more or less money from this, but, you are saved from the big loss (Less Risk Investment) together. At the same time, this bank is capable of giving a much higher return investment than FD. But before investing, check the history of the company thoroughly.
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Will have to pay tax on this investment
Let us tell you that if you invest in PPF, then you get exemption in Income Tax. However, you will have to pay tax on the income earned from long term or short term investment of investment in corporate bonds.
Keep these things in mind while investing in corporate bonds
Corporate bonds offer good returns with low risk.
Invest only after checking credit rating agencies. This reduces the risk.
Companies whose rating is AAA are the safest.
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