How do you approach credit risk on corporate NCDs?

We restrict recommendations to AAA-rated issuers — the historical default rate at this rating tier is negligible, but not zero. We monitor credit ratings on an ongoing basis and any downgrade below AA triggers an immediate review recommendation. We do not recommend sub-investment-grade instruments regardless of yield — the asymmetric risk of default is inconsistent with our preservation mandate.

Can I sell bonds before maturity?

Government bonds and exchange-listed NCDs can be sold in the secondary market before maturity, though at a price that may be above or below par depending on interest rate movements. We advise on the most favourable windows if you need early liquidity.

How are bond interest payments taxed?

Interest from NCDs and government bonds is added to your income and taxed at your slab rate. Tax-free bond interest is exempt. SGB maturity proceeds are tax-free if held to the RBI's 8-year redemption window. We structure your allocation to optimise post-tax yield.

WEALTH MANAGEMENT

Bonds & NCDs

Predictable income at 7–9.5% p.a. — sovereign bonds, AAA-rated NCDs, and tax-free instruments for the fixed-income sleeve of your portfolio.

7–9.5%

Yield Range (p.a.)

AAA

Minimum Credit Rating

Capital Safe

Focus on Preservation

OVERVIEW

Predictable Income, Capital Safety

For portfolios above ₹2 Cr, fixed income allocation is as much about liability matching and capital structure optimisation as it is about yield — creating predictable cashflows that hedge against liquidity needs without sacrificing equity compounding. Bonds and Non-Convertible Debentures (NCDs) fill this role, offering defined yields, scheduled interest payments, and return of principal at maturity.

We curate a fixed-income ladder across sovereign and AAA-rated corporate instruments: RBI Floating Rate Savings Bonds (7.35% currently), Sovereign Gold Bonds (2.5% interest + gold price appreciation + tax-free maturity), tax-free infrastructure bonds, and NCDs from NBFC and manufacturing issuers rated AAA. We do not recommend sub-investment-grade instruments regardless of yield — the asymmetric risk of default is not appropriate for wealth preservation.

Fixed income allocation varies by client profile — typically 20–40% for wealth-building clients and 50–70% for those in or near retirement. We structure maturities in a ladder so a portion of your bonds mature each year, providing liquidity without forcing portfolio disruption.

WHAT'S INCLUDED

Key Features

Sovereign Bonds

RBI Floating Rate Savings Bonds and Government Securities — zero credit risk with sovereign guarantee. Rates currently at 7.35% p.a., resetting semi-annually against the NSC rate.

Sovereign Gold Bonds (SGBs)

Government-issued gold bonds offering 2.5% annual interest plus gold price appreciation. Held to 8-year maturity — capital gains are fully exempt from tax, making the effective yield superior to physical gold.

AAA-Rated Corporate NCDs

Non-Convertible Debentures from highly-rated PSUs, banks, and NBFCs. Yields typically 0.5–1.5% above equivalent government bonds. We screen for credit quality, liquidity, and put/call provisions.

Tax-Free Bonds

Long-tenure bonds issued by infrastructure companies (NHAI, PFC, REC) with interest exempt from income tax. Particularly valuable for investors in the 30% tax bracket.

Bond Laddering

We structure your fixed-income portfolio with staggered maturities (1, 3, 5, 7 years) so a portion matures each cycle, providing liquidity and reinvestment opportunities.

Capital Preservation Focus

All recommended instruments are investment-grade or sovereign. We do not chase yield at the cost of principal safety — consistent with our institutional-grade advisory mandate.

PARTNERS

OUR PROCESS

How We Work

A clear, structured approach from your first consultation to ongoing support.

Income & Liquidity Assessment

We determine the appropriate fixed-income allocation based on your total portfolio, income needs, tax bracket, and liquidity horizon.

Instrument Selection

We identify the best risk-adjusted yield across sovereign, tax-free, and AAA corporate instruments for your specific tenure requirements and tax position.

Purchase Execution

Bonds are purchased through exchanges (NSE/BSE) or direct subscription during IPO windows — whichever offers better pricing. SGBs are purchased through RBI tranche windows.

Maturity & Reinvestment Tracking

We track every instrument's maturity date and proactively recommend reinvestment options 60 days before maturity — ensuring no idle cash periods in your portfolio.