Bonds are a type of debt investment that have gained popularity in India. Bond investors lend money to the issuer of the instrument. In the return, the bond issuer i.e. borrower pays interest to the investor at a pre-defined coupon rate till the maturity of the bond. Once the bond matures, the investor receives the original investment back. While most Bonds in India feature a fixed coupon rate, other types of bonds like floating rate bonds and zero-coupon bonds have grown in popularity over the years.

Investing in bonds in India - The bond issuer is required to pay the investor’s principal amount back at the time of maturity.
- Currently, bond investments in India can be made either directly or through Debt Mutual Funds.