Fixed income describes contractual cash-flow structures, not an absence of risk. Outcomes depend on the issuer, instrument terms and how long the investment is held.
Comparison factors
- Issuer and credit risk
- Interest-rate and reinvestment risk
- Maturity, call and cash-flow terms
- Liquidity and market-price risk
- Costs, taxes and recovery position
How to use the comparison
Government securities and corporate bonds have different risk sources. RBI Retail Direct provides access to eligible government securities, while corporate securities require issuer-specific due diligence.
Illustrative scenario
Illustrative scenario: a bond sold before maturity can realise a gain or loss as market yields and liquidity change, even when coupons are fixed.
Common interpretation errors
- Calling every bond safe
- Comparing coupon alone
- Ignoring maturity, liquidity or issuer concentration
Next step
Read the issue terms and compare cash-flow and risk characteristics with the intended holding period.
Official references
This material is educational and does not provide a personal recommendation. Product rules, costs and tax treatment can change; verify the current official documents before acting.