India, May 11 -- Bonds provide Indian investors their most dependable investment choice because they deliver consistent returns while carrying lower risks than stocks. The actual bond return value includes the bond's coupon rate and the Income Tax Act tax regulations that distinguish between interest earnings and capital gains and indexation benefits.

What are Bonds? Bonds function as debt instruments that governments and public sector entities and private companies use to obtain funding from their investors. The issuer guarantees to make payments, which include

Regular interest (coupon payments) Principal amount at maturity Investing in a bond represents a loan you make to the issuer in exchange for fixed returns.

Types of Bonds in ...