Corporate Fixed Deposits (FDs)
Corporate Fixed Deposits are term deposits offered by companies, providing an alternative to traditional bank fixed deposits. These FDs are designed to offer higher interest rates compared to bank FDs, making them an attractive option for investors seeking steady returns.
Corporate FDs are typically issued by reputable financial institutions, non-banking financial companies (NBFCs), or corporates with strong credit ratings. They come with flexible tenures, ranging from a few months to several years, allowing investors to align their investment horizon with their financial goals.
Investing in corporate FDs provides the advantage of predictable returns, tax-saving options (in some cases), and portfolio stability, especially for risk-averse investors. However, evaluating the creditworthiness of the issuing company is crucial before investing.
Corporate Bonds
Corporate Bonds are debt instruments issued by companies to raise capital. These bonds provide investors with a fixed income in the form of interest payments (coupon) over a specified period and the return of principal upon maturity.
Corporate Bonds are ideal for investors looking for stable, predictable income with a relatively lower risk than equities. Bonds are issued in various categories, including:
- Investment-grade bonds: Issued by companies with high credit ratings, offering lower risk.
- High-yield bonds: Issued by companies with lower credit ratings but offering higher returns to compensate for the additional risk.
Investing in corporate bonds provides portfolio diversification, tax efficiency, and the flexibility to choose bonds based on credit ratings, tenure, and interest payouts.
Why Choose EquityNest?
EquityNest provides access to a wide range of Corporate FDs and Bonds from reputed issuers, enabling investors to build a diversified fixed-income portfolio. Our expertise helps investors select the most suitable instruments based on creditworthiness, tenure, and expected returns, ensuring alignment with their financial objectives.