Joydeep Sen
Fixed income investments happen mostly through the mutual fund route, and rightly so, because of the advantages of accessibility and liquidity. However, investors need to be aware of the avenue of direct exposure in bonds, for the sake of wider choice.
Tax-free bonds
The biggest drawback of the direct bond route is lack of liquidity in the secondary market. This problem is, however, not there in one segment of the bond market: Tax-free PSU bonds. These bonds are rated top notch, i.e., AAA, and have implicit government support.
