In India, there are various types of Fixed Income Securities available like government bonds, corporate bonds, treasury bills, debentures, fixed deposits, senior citizen saving schemes, etc.

The risk associated with Fixed income securities are broadly assessed in relation to the issuer. The securities issued by the Government and quasi-government authorities are considered to be safer than those issued by private corporations. Even within private corporations, the issuers having higher credit ratings from the credit rating agencies are generally considered to be safer than ones having lower credit ratings.

The returns from fixed income securities is directly related to the risk perception of that instrument, which means, higher the risk perceived in an instrument, higher will be the rate of return expected from the security. Therefore, in general the Government securities will be available for a much lower rate of interest (return), than a security like corporate Fixed deposit.

A debenture refers to a type of long-term debt instrument that is issued by corporations, governments, and other organizations to raise funds from investors. It is an unsecured bond that does not have any collateral backing it up. The issuer promises to pay the lender the principal and interest periodically until the debenture matures. Debentures are commonly used by companies to finance their operations, make acquisitions, or invest in expansion opportunities

A Non-Convertible Debenture (NCD) is a form of debt security that is released by a corporation and can't be converted into stocks of the same company. In simpler terms, it is a fixed-income security with a specific maturity date and a predetermined interest rate.

A sovereign bond or government bond is a type of debt security that is provided by a national government in order to fund its operations or spending. When an investor buys a government bond, they are essentially lending money to the government, which promises to pay back the principal amount plus interest at a fixed rate over a specified period of time.

A zero coupon bond is available where the interest payment is not made during its term. These bonds are sold at a lower price than their face value, but the bondholder will receive the full-face value upon maturity. They are commonly referred to as deep discount bonds due to the huge discount at which they are typically issued.

A debt instrument that corporations utilize to raise finance from investors is referred to as a corporate bond. These bonds are generally used to finance large-scale projects, expansions, or other initiatives that a corporation may not be able to cover with its existing resources.

Corporate fixed deposit is a type of investment where individuals or organizations can deposit their funds in a company for a fixed tenure. The deposit interest rate offered by the company surpasses that of banks for fixed deposits.

Capital Gain Bond is an investment instrument that offers tax exemption on long-term capital gains. These bonds are issued by the government and the proceeds are used for infrastructure development activities.

Peer to peer lending is a type of lending that allows individuals to lend money directly to other individuals online, without the need for a traditional financial intermediary such as a bank.

The tenure of investment in fixed income securities in India varies according to the type of security chosen by the investor. Generally, fixed income securities can have short-term, medium-term, or long-term tenure ranging from 3 months to 30 years.

Yes, Short term and long term fixed income securities are available for investment purposes ranging from 3 months to 30 years.

The name fixed income securities implies that the income generated from them is always fixed. However, this is not always the case. The interest rate on fixed income securities can change with market conditions. For example, if interest rates rise, the value of existing fixed income securities may decrease, which can result in a smaller return than expected

The tax implications on income from fixed income securities depend on several factors such as the type of security, the investor's tax bracket, and the duration of investment. Some fixed income securities are tax exempt, some are taxed at 20% while others are taxed at the marginal rate, .i.e the tax rate applicable to the individual concerned

Yes, fixed incomes securities are available in demat form also.

Certain fixed income securities are listed on stock exchanges in India. These securities are typically in the form of bonds or debentures issued by companies, government entities, or other financial institutions. They are traded on the debt segment of stock exchanges such as the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
When fixed income securities are listed on stock exchanges, investors have the opportunity to buy and sell them in the secondary market. This provides liquidity and allows investors to trade these securities before their maturity date. The listing of fixed income securities on stock exchanges also enables price discovery and transparency in the market.
It is important to note that not all fixed income securities are listed on stock exchanges. Some fixed income instruments, such as bank fixed deposits and certain government savings schemes, are not traded on stock exchanges but are offered directly by the issuing institutions.

Yes, it is possible to experience capital losses in fixed income securities. While fixed income securities are generally considered less risky than equity investments, they are still subject to certain factors that can impact their market value and potentially lead to capital losses. Here are a few reasons why capital losses can occur in fixed income securities:
1. Interest Rate Changes: Fixed income securities, such as bonds, have a fixed interest rate at the time of issuance. If interest rates rise in the market, newly issued bonds with higher yields become more attractive to investors. As a result, the market value of existing fixed income securities with lower yields may decline, leading to capital losses if sold before maturity.
2. Credit Risk: Fixed income securities carry credit risk, which refers to the possibility that the issuer may default on its payment obligations. If the market perceives increased credit risk associated with a particular issuer, it may lead to a decrease in the market value of their fixed income securities, resulting in capital losses.
3. Market Sentiment and Demand: The overall market sentiment and investor demand for fixed income securities can also impact their prices. If there is a decrease in demand or negative sentiment towards fixed income securities, their market value may decline, leading to capital losses.

Investment in fixed income securities is usually considered a safer choice when compared to equity, as they offer a predictable income stream and a low level of risk. However, there may be situations where the value of the securities may erode or the returns may not be generated as per expectations

Bonds and certificates of deposit are examples of fixed-income securities that provide a predictable investment return. However, there is no assurance or guarantee of earning income

Before committing to fixed income securities, investors need to carefully evaluate their investment goals and timeframe as these securities are primarily meant for long-term investments. It is crucial to keep this in mind. However, in many cases, investors can withdraw their investment from fixed income securities before maturity.

To buy fixed income securities, you can approach a brokerage house who deals in fixed income securities, who will help you with all the process and paperwork involved. Or write to us @support@dealplexus.com to get assistance.

If you are looking to buy Fixed Income securities and need assistance, DealPlexus is here to help. With their expert knowledge and understanding of the market, they can guide you through the process of purchasing these securities.