Benefits of Investing in Corporate Bonds

Why invest in corporate bonds?

Corporate bonds come with various advantages for investors:
  • Higher Yields: Typically, corporate bonds offer higher interest rates compared to government securities or fixed deposits. This is attributed to the increased credit risk associated with corporate bonds.
  • Diversification: Incorporating corporate bonds into your investment portfolio can provide diversification, potentially mitigating overall risk.
  • Tax Advantages: Certain corporate bonds, like tax-free bonds from PSUs, come with tax benefits. The interest earned from these bonds is exempted from income tax, making them attractive for individuals in higher tax brackets.

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