What are
Perpetual Bonds
and why should you buy them?
What Are Perpetual Bonds?
Perpetual Bonds or Perps are fixed income securities that do not have a maturity date.
What Are Perpetual Bonds?
Issuers usually keep a Call Option Date wherein they can redeem the bond if they wish to.
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Risks
Possibility of Funds getting blocked. They carry risks associated with equity share holders.
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Risks
Likelihood of redemption on Call Option date.
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Benefits
Lowers reinvestment risk. Provides high yield and coupon rate.
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Provides regular source of income. Better yield than regular Fixed Deposits.
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Benefits
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Perpetual Bonds available to buy right now
MUTHOOT FINCORP LIMITED
Rating – A by Crisil
Call Option Year
2032
Interest Rate Current Yield
12.00% 11.30% 10 Lakhs
Minimum Investment
TATA MOTORS FINANCE SOLUTIONS LTD
Rating – A by Crisil
Call Option Year
2032
Interest Rate Current Yield
9.23% 9.10% 10 Lakhs
Minimum Investment
INDUSIND BANK LTD
Rating – A by Crisil
Call Option Year
2032
Interest Rate Current Yield
10.50% 8.55% 10 Lakhs
Minimum Investment
STATE BANK OF INDIA
Rating – A by Crisil
Call Option Year
2032
Interest Rate Current Yield
8.50% 7.25% 10 Lakhs
Minimum Investment
SOUTH INDIAN BANK LIMITED
Rating – A by Crisil
Call Option Year
2032
Interest Rate Current Yield
13.75% 13.00% 10 Lakhs
Minimum Investment
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