Corporate bonds and government securities offer better returns than FD

Get higher returns than FDs

This scheme offers better returns than FD

Do you want fixed returns on your investments with low risk? Is FD return limiting your returns on your fixed-rate investments? Then you should explore other options to get higher returns on your fixed interest rate investments. 

 Corporate bonds are a good option if you want higher returns. The returns on corporate bonds are higher than on fixed deposits. If you select good AAA-rated bonds, you can also get a higher return with low risk. Also, government securities are giving higher returns than fixed deposits. The government guarantees the government securities, and these investments virtually have no risk. If you are getting a higher return on government securities, you should invest in these government securities over fixed deposits. 

 Here's the Importance of Bonds in your investment portfolio 

Get more returns with corporate bonds and government securities

Tax-free bonds in the market offer almost 8% in the current market. On the other hand, fixed deposits are offering just 6.5%. Investors invest more in corporate and other bonds over fixed deposits. When getting a higher return on corporate bonds, you should explore the option to get more on your fixed-rate investments.

Also, government securities are a good option to invest in your portfolio. India guarantees the government securities, and the risk on these securities is virtually zero. With the almost zero risk, you will expect the government securities to give lower returns than the fixed deposits. But this is not the case, as the government securities are giving higher interest rates than fixed deposits.

Also, the government securities can be invested in the super long term. For example, government securities offer investment options for expiration dates in 2051 and 2061. Thus, you can invest for the super long term with the help of government securities. The fixed deposits, in comparison, are available for a max term of 5-7 years only. Thus, you can make use of the high-interest rate environment and lock in your returns for the long term. Here is the list of best tax free bonds to invest

The fixed deposits offer low-interest rates in the current environment compared to bonds and government securities. With corporate bonds, you can get a 1-2% higher interest rate than fixed deposits. Also, with government securities, you can get good returns in the long term as these securities can also be bought for the very long term. Government securities in the markets can help you lock in your returns till 2051 and even 2061. Thus, you can purchase government securities for expiries of 39 years and lock in the returns for the very long term. This will help you to make consistent returns over the long term. Read this article if you are planning to invest in Corporate bond funds.


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