If you stock market Bonds can prove to be a better and stable investment option if they are troubled by the ups and downs. Experts believe that bonds are giving a sure and regular return to investors amidst the existing global uncertainties, inflation and increasing concerns over US interest rates. This is the reason why bond investment is becoming attractive to those who want to avoid risk and are looking for stable income.
Stock market declines, but bond stability
According to Srisha Acharya, vice president of Anand Rathi Global Finance, the Nifty 50 has fallen by 5.4% in the last three months, while government and corporate bonds are giving stable returns. ” Government bonds are currently giving returns of 6.2% to 6.8% annually, while high rating corporate bonds are giving an annual return of 6.8% to 7.5%.
He also stated that for long -term investors, especially those who want to avoid risk, bonds serve as a protective investment. Also, it is also an important means to diversify the investment portfolio, which can reduce market volatility by about 30%.
Trust in bond returns, especially in uncertain environment
According to India Bonds co-founder Vishal Goenka, “When the market is being affected by geopolitical tension, central bank policies and global events, Bond investment provides a stable cash flow and capital protection.”
A look at the figures
- The total return of Nifty 50 during 2020-2025 was 19.8%, but the fluctuations were high.
- At the same time, Sona gave an annual return of 16.32% during the same period.
- The average return of 10 -year government bond was 6.19% and AAA corporate bonds annual average returns were 6.9%.
- In 2024–25, Nifty gave only 7.44% returns, while gold gave a stable return of 41.5% and AAA rated corporate bonds 8.03%.
Lack of awareness about bond investment
Srisha Acharya says that even today, among the bonds, especially among the youth, are not as popular. The reason for this is relatively low returns, low publicity, and low attendance in financial apps and media. The desire for more returns among the youth draws them towards equity or mutual funds. However, this situation is now changing through RBI Retail Direct and Digital Platforms such as India bonds.
Development of bond market
Bond market is developing rapidly in India. According to Goenka, India’s total bond market has now reached $ 2.69 trillion. Although there is still a need to improve liquidity and access to the developed markets like America, this change is happening rapidly with the efforts of SEBI and other institutions.
How much bond to bond?
A simple rule is to reduce your age from 100 and invest in equity equity and in the remaining percentage bonds and fixed income means. For example, if you are 40 years old, 60% you can keep in equity and 40% in stable investment like bonds.
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