Bank fixed deposits (FDs) have traditionally been the most favoured debt investment option among Indians. But not anymore. With interest rates on FDs falling, especially over the past one year, their popularity is waning. In such times, corporate bonds can serve as an alternative to bank FDs for investors looking for low-risk investment options.
Also known as non-convertible debentures, corporate bonds are debt instruments issued by companies as an alternative to bank loans. Safety of corporate bonds can be evaluated from the credit ratings issued by rating agencies. Issuers with AAA rating have the highest safety and lower credit risk than those with AA rating.
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An investor education initiative by Mirae Asset Mutual Fund.
All Mutual Fund investors have to go through a one-time KYC (Know Your Customer) process. Investors should deal only with Registered Mutual Funds (RMF). For further information on KYC, RMFs and procedure to lodge a complaint in case of any grievance, you may refer the Knowledge Center section available on the website of Mirae Asset Mutual Fund.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
