Home > Money > Question
Need Expert Advice?Our Gurus Can Help

What Monthly Bonds Are Safest With Good Returns?

Ramalingam

Ramalingam Kalirajan  |7497 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 07, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Vishnu Question by Vishnu on Dec 05, 2024Hindi
Listen
Money

Suggest some bonds where I can invest monthly. For a safer returns. And please let me know is indiabonds is a safe platform to invest.

Ans: Investing in bonds monthly is a safe way to grow wealth steadily. However, instead of investing directly in bonds, bond mutual funds offer better options.

Bond mutual funds provide diversification and professional management. They also eliminate the need to worry about individual bond risks like defaults.

Certified Financial Planners (CFPs) recommend investing through mutual fund distributors (MFDs). It simplifies the process and ensures expert guidance.

Challenges of Investing in Direct Bonds
High Minimum Investments: Direct bonds often require larger amounts than bond funds.

Limited Liquidity: Selling bonds before maturity can be challenging and may incur losses.

Complexity in Selection: Choosing the right bond demands market knowledge and regular monitoring.

Interest Rate Risk: Fixed returns may lose value due to inflation or rising rates.

Instead of direct bonds, bond funds provide flexibility and cost-effectiveness.

Why Use an MFD Instead of Online Platforms?
Platforms like IndiainBonds may seem convenient. However, there are drawbacks to investing without personalized guidance:

Limited Advice: Platforms don't offer tailored financial planning.

Transaction Focused: They prioritize transactions, not long-term financial goals.

Hidden Costs: There could be transaction fees or platform charges.

MFDs work alongside Certified Financial Planners to design suitable strategies.

Benefits of Bond Funds over Direct Bonds
Regular Income: Bond funds reinvest payouts, growing your corpus.

Professional Management: Expert fund managers handle portfolios.

Tax Efficiency: Long-term holding of bond funds aligns better with tax rules.

Ease of Investment: SIP options allow monthly investments with smaller amounts.

Diversification: Bond funds spread risks across multiple bonds.

New Tax Rules for Bond Fund Investments
Long-term gains from bond funds are taxed per your income slab.

Short-term gains are also taxed as per your slab.

Discuss taxation strategies with a Certified Financial Planner to maximize post-tax returns.

How to Structure Monthly Bond Fund Investments
Determine Investment Goals: Know the purpose of your investment.

Assess Risk Appetite: Select bond funds matching your risk level.

Choose the Right Fund: Opt for funds managed by reputed firms.

Monitor Performance: Review returns regularly with your CFP.

Start Systematic Investments: Use SIP to invest monthly.

Ensure Liquidity: Check for easy redemption features if needed.

Final Insights
Direct bonds may not suit all investors. Bond funds are simpler and safer alternatives.

Certified Financial Planners can offer holistic advice tailored to your needs. Invest through MFDs for consistent returns and better support.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |7497 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Listen
Money
Instead of FD, are corporate bonds are safe investments. Which are good corporate bonds which can yield better interest than FD, so that i can invest 50K and what are platforms to invest in corporate bonds.
Ans: Bond funds pool money from many investors to buy a diversified portfolio of bonds. These can include government, corporate, and municipal bonds. Bond funds offer better diversification and professional management compared to individual bonds.

Safety of Bond Funds
Diversification
Bond funds invest in a variety of bonds. This reduces the risk compared to investing in individual corporate bonds.

Professional Management
Bond funds are managed by experts who make investment decisions. This can enhance returns and reduce risks.

Choosing Good Bond Funds
Credit Quality
Invest in bond funds with high credit quality. Funds that invest in high-rated bonds are safer.

Fund Performance
Look at the historical performance of the bond fund. Consistent returns indicate good management.

Expense Ratio
Check the fund's expense ratio. Lower expenses mean more returns for you.

Benefits of Bond Funds over FDs
Higher Returns
Bond funds often provide higher returns than fixed deposits. They invest in a mix of high-yield bonds.

Diversification
Bond funds offer diversification across different types of bonds. This reduces the overall risk.

Liquidity
Bond funds are usually more liquid than individual bonds. You can buy or sell them on any business day.

Disadvantages of Direct Funds
Direct funds may have lower fees, but regular funds offer significant benefits:

Expert Management: Certified Financial Planners (CFPs) provide tailored advice.

Active Oversight: Regular funds are actively managed by professionals.

Market Guidance: CFPs help navigate market fluctuations and maintain investment discipline.

Final Insights
Research Thoroughly: Choose bond funds with high credit quality and good performance.

Diversify Investments: Diversify across different types of bond funds.

Seek Professional Advice: A Certified Financial Planner can provide expert guidance.

Your interest in bond funds is commendable. With proper research and guidance, they can enhance your investment portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Dr Deepa

Dr Deepa Suvarna  |139 Answers  |Ask -

Paediatrician - Answered on Jan 12, 2025

Nayagam P

Nayagam P P  |4039 Answers  |Ask -

Career Counsellor - Answered on Jan 12, 2025

Asked by Anonymous - Jan 09, 2025Hindi
Listen
Career
Dear experts, I was reading about V Narayanan’s journey from a Tamil medium school to ISRO chief. I’m an engineering student from a modest background. My father works in a private firm and mother is a housewife. Finances are a major hurdle. Are there specific scholarships or support programmes for students aiming to get into prestigious institutions like Anna University?
Ans: Pursuing higher education at Anna University is a commendable goal, and there are several scholarships and support programs available to assist students from modest backgrounds. Some of these include the Tamil Nadu Government Scholarships, which provide financial assistance to cover tuition fees, the DHAANISH BC/MBC/DNC Scholarship, SC/ST Scholarship, Central Government Scholarships, AICTE Pragati Scholarship for Girls, and Institutional Scholarships at Anna University. The application process involves eligibility verification, documentation, application submission, and tracking deadlines. Additional support includes educational loans at subsidized interest rates for economically weaker sections and fee waivers for meritorious and needy students. It is advisable to regularly check Anna University and the Directorate of Collegiate Education, Tamil Nadu, for the latest updates on available scholarships and application procedures. Also please visit buddy4study website & explore, You will get a lot of inputs about Schoarhsips. All The BEST for Your Prosperous Future.

Follow RediffGURUS to Know More on ‘Careers | Finance | Health | Relationships’.

...Read more

Nayagam P

Nayagam P P  |4039 Answers  |Ask -

Career Counsellor - Answered on Jan 12, 2025

Listen
Career
Help Needed: Unable to Login to JEE Mains Portal Due to Mistaken DOB Entry Hello Everyone, I’m reaching out to seek advice and support from anyone familiar with handling issues on the JEE Mains portal. Despite entering my correct application details, I’ve been unable to log in to download my admit card, and I believe it’s due to a mistake I made during the application process. The Problem During registration, I mistakenly entered the wrong date of birth. My correct date of birth is 12/08/2008, but I accidentally entered 22/08/2008. Now, neither date works when trying to log in, and I keep getting the error message: "Invalid Application No or Date of Birth." My Details: Name: Shivam Srivastav Application Number: ...................... Registered Contact Number: ...................... Registered Email ID: ................. Request for Help If anyone has faced a similar issue or knows how to resolve this problem, please share your suggestions. I’ve already emailed the authorities but am waiting for a response. I’m also prepared to provide necessary documents, such as my Class 10th marksheet, to verify my correct date of birth. Any help or guidance would be highly appreciated! Thank you for your time and support. Warm Regards,
Ans: Satyam, First step: Verify the following right away: Any SMS on your Registered Mobile Number from NTA from the date you registered in the NTA portal; your Registered email Inbox for any mails from NTA from that date. There's more likely you missed it or the mails ended in SPAM/JUNK Folder.

The second step is visiting NTA Jee Main Website. Click Contacts US Menu. around 4-5 Helpline Numbers can be tried and also send REMINDER MAILS to all mail IDS supplied there from your Registered eMail ID, by providing the following information: (a) Your Application Number (2) Your Registered Mobile Number (3) The nature of the problem & (4) Scanned copy of your Class 10 Marksheet for your DOB proof.

Please be advised; admit cards will only be released on January 19 or 20.

Third step: You have not indicated you are from which place? If you know of any colleagues or family friends in Delhi, ask them to personally visit the NTA Office and try to settle the matter this week; by next week, the Admit Card would be issued.

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x