Corporate Fixed Deposits and Bonds

Financial institutions, both banking and non-banking financial companies (NBFCs), provide Corporate Fixed Deposits.

These Fixed Income Investment options are rated from AA to AAA by credit rating agencies like ICRA, CARE, and CRISIL for their credibility. Backed by high-quality corporate offerings; their maturity tenures range from a few months to a few years. There is no effect of market fluctuations as the rates are predetermined; such profitable Corporate Fixed Deposits also offer attractive Interest rates. 

A Corporate Bond is a type of debt issued by a corporation in order to raise capital and sell 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.

A corporate bond fund is essentially a mutual Fund that invests more than 80% of its total financial resources in corporate bonds of Top-rated companies that have higher credibility. These funds have lower risk sensitivity ensuring capital protection. It is ideal for risk-averse investors looking for high returns on their investments preserving the liquidity of the investor.

Debt Security such as high-quality Tax-free Bonds are suitable for investors looking for better diversification and a balanced portfolio for long-term annuity returns and a regular tax-free income.