What is a Bond ?

A bond is said to be a debt instrument in which the issuer company borrows money from the lender (bondholder) and, in return, is obliged to pay interest on the principal amount. The interest is called the coupon. The holder enters a formal contract where the issuer decides to repay borrowed money along with interest at fixed intervals, such as on a semi-annual, annual, or monthly basis.

54 EC Capital Bonds: 54 EC Bonds or capital gain bonds are one of the best ways to save on long-term capital gain tax. 54EC Bonds are of paramount importance for a person who has got long-term capital gains and wishes to make a tax exemption on the same. The maximum Limit for Investment in 54EC Bonds is 50 Lakhs.
RBI Floating Bonds: RBI floating bonds are issued by the Reserve Bank of India. The interest offered is attractive which can fluctuate depending on the rates announced by RBI from time to time. The interest earned from such bonds is taxable and the chances of default are the least considering it to be a RBI issued security.
Tax-Free Bonds: Tax-Free Bonds are bonds issued by Government Enterprises. Tax-Free Bonds generally come with a long-term maturity period of more than 10 years. The biggest benefit of tax-free bonds is that the total interest earned from these bonds is tax-free and moreover since they are issued by government enterprises it has no chance of default.

Steady Income: Bonds typically provide a fixed interest payment at regular intervals, offering a predictable income stream. This can be especially attractive for retirees or those seeking stable returns.
Preservation of Capital: Unlike stocks, which can be volatile, bonds offer more stability in terms of preserving capital. This makes them a valuable component of a diversified investment portfolio, particularly for risk-averse investors.
Portfolio Diversification: Bonds can help diversify a portfolio, spreading out risk across different asset classes. When stocks are performing poorly, bonds may hold their value or even increase in value, helping to offset losses in other investments.

Higher Interest than Fixed Deposits: Bonds often have longer maturity periods than fixed deposits, which can also contribute to higher interest rates. Investors tying up their funds for longer periods may demand higher returns to compensate for the opportunity cost of not being able to access their money for an extended period.

Why Ashutosh Financial Services?

Ashutosh Financial Services is a 25+ years old company that has been assisting individuals and companies in various aspects like Investment, Insurance, Income Tax Planning, etc. At Ashutosh Financial Services we always put the investors’ interests first and do our best to ensure that investors’ objectives are achieved in a timely manner. We strive to make every Indian financially literate and independent.

We at Ashutosh Financial Services put maximum importance on understanding your Investment objectives and creating a customized investment plan to ensure the complete achievement of your investment goals. We pride ourselves to be the best goal-based planners. Post Investment, we keep regular track of all your investments to ensure the complete achievement of your investment objectives.

Through our years of experience, we at Ashutosh Financial Services have created a process through which we aim to provide you with the best investment-related services and ensure that you have a hassle-free experience. We have a team of well-qualified and experienced members that are more than enough capable to assist you regarding all your investment matters.

Understanding Bond Terminology

A bond is a fixed income instrument however, there are a lot of terms in a bond that a common man would be unaware of. We will help you understand various terms like Coupon Rate, Yield Rate, Maturity Date, Face Value, Interest Payout System, etc. The understanding of all these terms will help you to better plan your investments and achieve your goals. We will also inform you about the tax aspect of investing in bonds to ensure that you have a total understanding of bonds.

Risk Assessment

Once the preliminary meeting is concluded, we will use our preset strategies and determine the level of risk you should take to achieve your goals. We will then pass our suggestions about your risk assessment to our research and analysis team, who shall pick the best bonds for your investment. Risk assessment will help us in picking the best bond or bonds that will achieve your investment objective while keeping your investment relatively risk-free.

Research & Analysis

We, at Ashutosh Financial Services, take immense pride in being of the very few companies in this field to have our own Research & Analysis Department. Bonds undoubtedly are safer than other investments as they are secured by the issuing company’s assets, but it does not mean that they are fail-proof. Hence our research team stays completely updated with the bond issuing companies and their financial data to avoid the risk of default.

Investment Process

We will then approach you again with all the necessary documents for the final investment process to be concluded. A lot of the bonds these days are tradeable and hence are held in Demat form, our team will do all the necessary processes to get the bond units in your Demat account.

After Investment Process

Once the Investment process is done you will be assigned a Dedicated Relationship Manager. The said manager will be your point of contact and will be available at times to solve your queries. We also conduct a periodic review of your investments to check and assess the performance of your investments. We will notify you if we feel there is a need to change anything in your investments.

Our aim is to become your one-stop solution for your financial needs. Through our expert and qualified team, we try to give you the best advice regarding your investments. We also keep ourselves updated with all the activities happening in the world of finance. We aim to provide you with quality & unbiased services to secure your goals and future needs. We at Ashutosh Financial Services, are committed to continuously providing financial services to our investors to the best of our ability.

Our Key USPs are as under

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Taxation

Taxation of Listed Bonds and Debentures

Period of holding	Type of Gain	Tax Rate for Resident
Less than 12 months	STCG	As per Tax Slab
More than 12 months	LTCG	10% (without Indexation) (Section 112)

Taxation of Unlisted Bonds and Debentures

Period of holding	Type of Gain	Tax Rate for Resident
Less than 36 months	STCG	As per Tax Slab
More than 36 months	LTCG	20% (without Indexation) (Section 112)

Taxation of Market Linked Debentures (MLD)

Period of holding	Type of Gain	Tax Rate for Resident
Irrespective of period of holding, it is deemed STCG (Section 50AA)	STCG	As per Tax Slab

Bonds