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With rising interest in fixed-income assets due to the ongoing underperformance of the benchmark Nifty50 index and the broader equity market, many first-time investors are exploring bonds as a way to diversify portfolios and secure predictable cash flows.

Bonds issued by governments and corporations pay periodic interest and return principal at maturity. Still, before selecting any particular bond for investment, beginners need to understand and acknowledge risks, documentation, and yields.

You should always check the credit rating from ICRA, CRISIL, CARE, or India Ratings. Furthermore, higher yields generally mean higher risk. Government securities carry almost negligible credit risk. Corporate bonds, especially the lower-rated ones, require deeper analysis and scrutiny before applying.

Investors can access bonds through RBI Retail Direct, NSE goBID, and BSE Direct or registered brokerage firms. As a prudent investor, you should compare transaction charges, processing fees, and ease of purchasing before opting for any particular bonds.

Hence, for beginners, starting small with government bonds can be the safest option to acknowledge and understand the debt market. With proper KYC, awareness, and steady monitoring of credit ratings, bonds can bring stability and reliability to a long-term portfolio.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Bond investments carry risks, including credit and interest rate risk. Please consult a SEBI-registered financial advisor before making any investment decisions.

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