Bonds, also known as fixed income securities, offer investors the option to invest in fixed coupon instruments through the Primary & Secondary market route. At Tata Capital, you can invest in bonds through Primary Issue Bonds & the Secondary market route. Both these markets provide investors with unique and different opportunities to maximise their financial returns.
Primary Issue Bonds
Primary Issue Bonds are issued to corporates or high net worth individuals (HNI) directly through the allotment of Private Placement Issue or Public Issue Offering. The minimum investment amount for Private Placement Issue is generally around ₹1 crore and for Public Issue Offering is around ₹ 10,000 crores.
Majority of transactions within the bond market actually takes place through Secondary Bond market route. Here, either corporates or high net worth individuals (HNI) buy bonds from the primary market and then sell them to investors with a premium on purchase price of bonds. These transactions are done with help of a bond broker. There is no minimum investment amount when it comes to trading within the secondary bond market.