The ballast
Bonds & Fixed Income
Predictable cash flows for the part of your money that shouldn't surprise you.
Government-backed and institution-issued instruments with fixed or floating interest — including 54EC capital gain bonds, RBI floating rate bonds and Government of India securities. Useful for near-term goals, retirees, and parking capital-gains proceeds tax-efficiently.
Layer 2 of 6 in the access spectrum
How it works
Match the instrument to the need
Capital gain bonds for tax deferral, RBI floating rate bonds for rate protection, G-secs for long safe duration. Each solves a different problem.
Understand the lock-in
54EC bonds carry a 5-year lock-in; most bonds reward holding to maturity. We make sure the tenure fits your cash-flow calendar before you commit.
Ladder and hold
Staggered maturities turn a bond portfolio into a schedule of predictable payouts instead of one big reinvestment decision.
Who this is for
Investors with property or other capital gains seeking Section 54EC exemption
Retirees who want contractual interest rather than market returns
Conservative allocations inside a larger goal-based portfolio
Anyone laddering known future expenses against known payouts
The bond desk
Corporate Fixed Deposits
Rated deposits from institutions such as Bajaj Finance, LIC Housing Finance, PNB Housing Finance, Mahindra Finance, Shriram Finance and HDFC Bank — monthly, quarterly, annual or cumulative payouts, typically 1–5 year tenures.
Good questions
Asked at almost every first meeting
The honest answers, before you even have to ask. Anything else — that's what the first conversation is for.
No — a demat account is not mandatory for REC, IRFC, PFC or HUDCO capital gain bonds. You can hold them in physical form; you'll need your PAN, a self-attested address proof and a cancelled cheque with the application.
Section 54EC requires investing the long-term capital gain within six months of the transfer date, up to ₹50 lakh per financial year. The earlier in that window you invest, the sooner interest starts accruing.
No. The capital-gains exemption applies to the amount you invest, but the interest the bonds pay is taxable at your slab rate. No TDS is deducted on 54EC interest; RBI Floating Rate Savings Bond interest is taxable and subject to TDS rules — Form 15G/15H applies if eligible.
54EC bonds are locked for the full five years and are non-transferable — exiting early would also void the tax exemption. RBI Floating Rate Savings Bonds run seven years, with earlier redemption windows only for senior citizens, at a small interest penalty.
Plain-spoken risk
What can go wrong
Every instrument on this page is market-linked or carries its own constraints. You should know them before you commit — here they are, without the fine-print font size.
Interest from most bonds is taxable at your slab rate.
Selling before maturity, where allowed, can mean a price below face value.
Corporate instruments carry issuer credit risk — ratings matter and can change.
Fixed-income instruments are subject to issuer, interest-rate and liquidity risk. Coupon rates shown are as published by the respective issuers for the current series and are subject to revision — always confirm the live rate on the issue form before investing. Tax treatment depends on individual circumstances and prevailing law; please consult your chartered accountant or tax professional before investing for a tax outcome.
Wondering if Bonds & Fixed Income belongs in your plan?
That depends on your goals, horizon and what you already hold — exactly the conversation we start with.
Talk to us