Nowadays, earning money is not a necessity but a choice. There are innumerable schemes and ways to upgrade our invested money. One of the most popular trends currently is investing in bonds. Bonds also called fixed income instruments are used by governments or companies to raise finances by borrowing from different investors. There are many different types of bonds like municipal, savings, agency, treasury, and corporate.
When it comes to investments over bonds and making profits out of it, we cannot forget to mention or talk of the important and prominent association i.e. the South Indian Bank. Recently as per the latest issues of the media, it’s witnessed that 13.75South Indian Bank Code has raised a fund of ₹500 crores by issuing Basel III-compliant AT 1 Bond. The bank has issued 50,000 13.75% non-convertible yet fully paid-up but unsecured and perpetual, bonds in the nature of debentures with good issue size.Â
Some of the best benefits that bond investments assure are as follows :
- Safety matters: Bonds are considered comparatively safer and more secured for investments than stocks due to less volatility of equities.
- High Liquidity: Irrespective of other factors and causes, investing in bonds is a clever choice due to its high liquidity factor.
- Income Stream: Bond investments also provide a great range and stream for income with sure shot future benefits.
- Reliability: Bonds offer a quick and reliable source of the flow of monetary value and funds.
- Legal Protection: Bond investments are way more legally protected and under severe surveillance as compared to any other mode or form of investment.
- Lesser Risk Factor: The investments made in the bonds are lesser risky to the investors as compared with other fields due to its surety of financial gains of shares.
- High Customer Demands: As the interests are easily predictable after the investments by the investors, people trust and believe these associations and companies more and hence have high customer demand.
And there’s one more fact that has popped up amongst the fly hawk-eyes news about the South Indian Bank Codewhich speaks boldly about the13.75 South Indian Bank Perpetual Bonds. It has enrolled itself for the Channel Partnership for the distribution of the Capital Gain Bonds, Tax Free Bonds, and Infrastructure Bonds. It has also set up a private perpetual bond coupon rate of 13.75%payable amount.
With the proper listing of the date of tenure of the instrument, date of allotment, and date of maturity, the interest offered is 13.75% per annum on the anniversary of the date of allotment. However, they haven’t spoken anything about the other criteria such as special rights, privileges, interests, details of redemption, etc.
There’s risk and uncertainty in every field of investments. But the best part is you never know when you’re about to make the profits unknowingly and become the master of all trades. Hence, investments in bonds are a great choice and a cunning input of brain and money for making profits over the upcoming years.
