Bonds Investment in India: Steady Income and Capital Protection for Your Portfolio
Not every rupee needs to ride the market. For the part of your portfolio built for stability and predictable income, bonds can play a valuable role, paying regular interest and returning your principal at maturity, provided the issuer honours its commitment. The key is knowing which bonds to buy, from whom, and at what yield.
GRM Wealth curates government and corporate bonds from credible issuers, explains the yield, the rating and the risks in plain language, and helps you build a bond portfolio that matches your income needs and time horizon.
What Is a Bond?
A bond is a loan you give to a government or a company. In return, the issuer agrees to pay you a fixed rate of interest, known as the coupon, at set intervals, and to repay the face value on a specified maturity date. Because the cash flows are known in advance, bonds are a popular choice for investors who want regular income and more predictability than shares.
Types of Bonds You Can Invest In
Government securities (G-secs) and Treasury bills
Issued by the Government of India and backed by it, so they carry no conventional credit risk, though their prices can move with interest rates.
State development loans (SDLs)
Issued by state governments, typically offering a slightly higher yield than G-secs.
PSU bonds
Issued by public sector companies, often with strong credit ratings.
Corporate bonds
Issued by private companies, offering higher yields in exchange for taking on the issuer's credit risk.
Tax-free bonds
Issued by certain government-backed entities, where interest may be exempt from tax under the rules in force. Availability is mainly in the secondary market.
Understanding Bond Yield
The coupon is the interest rate printed on the bond. The yield is what you actually earn based on the price you pay. If you buy below face value, your yield is higher than the coupon; if you pay a premium, it is lower. Yield to maturity (YTM) captures the total return if you hold the bond until it matures. Bond prices and yields move in opposite directions: when market interest rates rise, existing bond prices tend to fall, and vice versa. Our free Bond Yield Calculator helps you compare options before you invest.
Why Invest in Bonds with GRM Wealth
Curated selection
We shortlist bonds from credible issuers rather than listing everything available.
Rating-led review
We check credit ratings from agencies such as CRISIL, ICRA and CARE before recommending any bond.
Yield comparison
We compare yields across issuers and maturities to find competitive, risk-adjusted options.
Laddering
We help you spread maturities so your cash flows are not concentrated in one year or one issuer.
Transparent advice
You see the yield, the rating, the risks and the costs before you commit.
Debt securities on the secondary market
Debt securities provide investors with an opportunity to optimise portfolios within a regulated trading environment. All figures from Nuvama Fortnightly Dashboard, June 2026.
Muthoot MCred Limited
Nature: SecuredKochi-based NBFC specialising in gold loans and allied financial services, with a legacy dating back to 1921 and over 990 branches across India. One of the leading gold loan providers, serving more than 3.5 million customers.
Navi Finserve Limited
Systemically important NBFC under the Navi Group, founded by Sachin Bansal in 2018. Provides digital personal loans and home loans through the Navi app, focusing on simplicity, affordability, and instant access.
Capri Global Capital Limited
Nature: SecuredIndian NBFC focused on retail and small-business lending. Primarily serves underserved and underbanked customers across India through secured lending products — MSME loans, affordable housing loans, gold loans, and construction finance.
Yields are indicative as at Nuvama Fortnightly Dashboard June 2026; YTM reflects current market price and will change with price. Returns not guaranteed. Read issuer documents before investing.
Save LTCG tax on property sales
Invest long-term capital gains from property in these government-backed bonds within 6 months of sale to claim tax exemption under Section 54EC.
Listed real-asset income instruments
Exchange-listed trusts that hold commercial real estate (REIT) or infrastructure assets (InvIT) and distribute rental/toll income quarterly. Returns are indicative.
Brookfield REIT (BIRET)
- AAA rated publicly listed REIT comprising 12 Commercial Real Estate assets with AUM of US $1 Tn.
- Listed on 16 Feb 2021 at ₹100 — current NAV ~₹387.
- ~50% tenants are GCC with 92% Occupancy rate; 6.50 years WALE.
- Plans to achieve 96% Occupancy rate by renewing existing leases at Mark-to-Market price.
- Q4 FY26 DPU announced at ₹5.50 — total FY26 DPU ₹21.40 (11% growth YoY).
- Clients can expect IRR of ~14%: 7% DPU Yield + 7% Capital Gain (indicative).
All figures indicative. IRR, DPU and projected YTM are not guaranteed. REIT/InvIT unit values are market-linked and can fall.
Capital Infra InvIT
- AAA rated publicly listed road InvIT comprising 9 NHAI HAM road assets — NHAI as counterparty.
- AUM of ₹4,282 Cr delivering stable, predictable returns.
- Listed 17 Jan 2025; market cap ₹2,726 Cr — distributed ~31% on IPO price of ₹99 (TRI at 105–106).
- FY26: 3 assets added — overall EV increases 63% from ₹4,028 Cr to ₹6,557 Cr.
- Plans to add 5 assets in FY27 — EV from ₹6,800 Cr to ₹10,000 Cr.
- Expected DPU H2 FY26: ₹5.5–6; FY27 expected ₹8–9.
- Clients can expect IRR of ~11% without price uptake; cash yield 10–12% (indicative).
All figures indicative. IRR, DPU and projected YTM are not guaranteed. REIT/InvIT unit values are market-linked and can fall.
Bonds vs Fixed Deposits: Which Is Right for You?
Returns
Bonds, especially corporate bonds, can offer higher yields than bank fixed deposits, with correspondingly higher risk.
Liquidity
Listed bonds can be sold before maturity subject to market demand; fixed deposits usually carry a penalty for early withdrawal.
Price movement
Bond prices can rise or fall before maturity; fixed deposits do not fluctuate in value.
Safety
Bank deposits are covered by deposit insurance up to the prescribed limit; bonds are not, so issuer quality is essential.
Income pattern
Many bonds pay interest at regular intervals, which suits investors who need a steady cash flow.
Risks to Understand Before You Invest
Credit risk
The issuer may delay or fail to pay interest or principal. Ratings help, but they do not remove this risk.
Interest rate risk
If market rates rise, the price of your bond may fall if you sell before maturity.
Liquidity risk
Some bonds trade infrequently, so selling early may take time or involve a discount.
Reinvestment risk
Interest received may have to be reinvested at lower rates.
REIT / InvIT NAV risk
REIT and InvIT unit prices are market-linked. The NAV can fall; DPU distributions depend on the occupancy / toll-collection revenue of underlying assets.
54EC lock-in
54EC bonds have a mandatory 5-year lock-in. Premature exit is not permitted. The 5.25% interest rate may be lower than prevailing fixed-income alternatives.
Returns are indicative
All YTM, DPU and projected IRR figures are indicative. They are not guaranteed and depend on issuer performance, market conditions and distribution decisions.
Who Should Invest in Bonds?
Bonds suit retirees seeking regular income, conservative investors who want to balance equity exposure, business owners with surplus funds and a fixed time horizon, and anyone who values predictability. They work best as one part of a diversified portfolio rather than the whole of it. For Non-Convertible Debentures and corporate fixed deposits, please see our dedicated NCD & Corporate FD page.
How to Invest in Bonds with GRM Wealth
Share Your Needs
Tell us your income needs, investment horizon and risk comfort.
KYC & Demat
Complete your KYC and ensure your demat account is ready.
Compare Shortlisted Bonds
Review the shortlisted bonds, with yield, rating and maturity side by side.
Invest Across Maturities
Invest in the bonds that fit your plan, ideally across different maturities.
Track & Reinvest
Track interest payments and maturity dates with your advisor, and reinvest as needed.
Frequently Asked Questions
Quick SIP Calculator
Talk to our fixed-income desk
Compare current bond options with GRM Wealth and build a fixed-income portfolio that pays you predictably. Talk to an advisor today, or try our free Bond Yield Calculator. We'll share current allocations, live YTMs and the full risk picture before you invest.
Investments in bonds are subject to credit, interest rate and liquidity risk. Returns and yields are not guaranteed. Secondary bond coupon, YTM and yield figures are indicative, sourced from the Nuvama Fortnightly Partners Dashboard (June 2026), and are not guaranteed — YTM changes with market price. 54EC bonds carry a mandatory 5-year lock-in; interest is taxable at your applicable slab rate. REIT and InvIT unit values are market-linked and can fall; projected IRR and DPU figures are indicative and depend on occupancy, toll receipts and distributions declared by the respective trusts. Past performance is not indicative of future results. This page is for general information only and does not constitute investment, legal or tax advice, nor an offer or solicitation. Please read all offer documents carefully and consult your financial and tax advisor before investing.