Products & Services

What are fixed-income instruments?

As the name suggests, fixed-income instruments provide fixed income to the investor. The payout may be received at fixed, regular intervals or at the end of a specified time period. On maturity of the instrument, the principal is repaid to the investor. Examples of fixed-income instruments are bonds, debentures, fixed deposits, Public Provident Fund, Post Office deposits and so on.

Why invest in fixed-income instruments?

Fixed-income instruments have long been used by people in India to park their savings and earn returns through interest rates higher than that offered by a savings account. [Read more]

The benefits offered by fixed-income instruments are:-

  • Steady income streams: Fixed-income instruments providing regular interest payments act as a steady stream of income for the investor.
  • Low risk: Fixed-income instruments are less risky, and hence are ideal investment avenues for people with low risk appetite.
  • Less volatility: Owing to the low level of volatility associated with them, fixed-income instrument are ideal for requirements that are critical in nature or have a low time horizon.
  • Predictability: Since the interest rate and structure of payments is fixed in advance, returns of fixed-income instruments are easier to predict.
  • Enhanced savings: Fixed-income instruments offer higher interest rate than offered in savings account, thus acting as more efficient avenues for savings.
  • Tax benefits: Investments in instruments such as PPF, Post Office Deposits, 5-year Fixed Deposits are exempt from tax upto a certain limit, and thus enable the investor to save tax on them.

How do I invest in fixed-income instruments?

Depending on the type of instrument, you can buy them directly from the issuer, or from the capital market. Some instruments such as bonds and debentures are traded on exchange, and you can buy them through a broker. You have to approach the issuer such as banks, post-offices to invest in instruments such as fixed deposits, PPF and Post Office Deposit schemes.

IIFL Offering

Trader Terminal, the proprietary trading terminal of IIFL offers the convenience ofbuying and sellingfixed income instruments online from the market and can be accessed as a desktop application as well as a Web application. IIFL also offers adviceon various products such as pension plans, fixed deposits and so on as a part of its advisory services.
Click here to access the Trader Terminal

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