Fixed Income Trading is the trading of fixed income securities in the market. This segment includes instruments like government bonds, corporate bonds, and other similar securities. These securities are usually favoured by risk-averse investors and investors seeking risk free stable incomes.
As this segment includes mainly government bonds and similar securities, the returns are usually tax-free and the corpus received at the end of the maturity period may also have tax benefits. Fixed income trading although a huge market overseas is still at a very nascent stage in India.
The government is in the process of building infrastructure to boost fixed income trading. Some factors to be considered in fixed income trading include credit risk, reinvestment risk, interest rate risk, price risk, etc. The key advantages of fixed income trading are capital appreciation, tax benefits, steady income, and the safety of corpus.
A PPF calculator is an online tool that helps you calculate the maturity amount at…
Non-resident Indians are not allowed to open a new PPF account. However, if a resident…
PPF rules do not allow joint accounts. An account can only be opened in the…
After the maturity of the PPF account, you have the option to extend it for…
From the 7th financial year onwards, you can make partial withdrawals from your PPF account.…