- Investment avenues where your invested (principal) amount is perceived to be safe.
- Umbrella term for all financial products that are based on borrowing.
- Give assured return
- Core of the product is a loan
- Makes up the core of a long term investment
- Good for stability, not for growth
Examples
- Bank fixed deposit
- Tax-free bond
- Public provided fund
- Bonds issued by the Govt of India (also called Government Securities (G-Sec) and T-Bills)
- Bonds issues by government related agencies like GAIL, HUDCO, NHAI, etc
- Bonds issued by corporates like Tata, Bajaj, etc
- Relatively risky. Investment in corporate bonds can go to zero
- Voluntary Provident Fund (VPF)
When you want the interest income regularly
Sources