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45. Additional Fixed-Income Structures

Step-Up Bonds

Step-Up

Bonds whose coupon rate increases at predetermined intervals over the bond's life.

Risk Level
Low ★★☆☆☆
Liquidity
🟡 Medium
Min Investment
₹1,000
Ticket Size
₹1,000 minimum
Ideal Horizon
1–3 years
Region
Global

📈 Historical Returns (Indicative)

1 Year
5–8%
3 Years
6–8%
5 Years
6–8%
10 Years
6–8%
20 Years
6–8%

⚠️ Indicative historical ranges only. Past performance does not guarantee future results. Returns vary significantly across individual instruments.

🧮 XIRR Calculator — Step-Up Bonds

Enter your actual investment dates and amounts to calculate your personal annualised return (XIRR). Use negative values for money invested, positive for money received back.

✅ Pros & ❌ Cons

Advantages

  • ✅ Low risk — capital largely protected
  • ✅ Predictable income stream
  • ✅ Capital preservation

Disadvantages

  • ❌ Returns may not beat inflation
  • ❌ Interest rate risk for long-duration bonds

🚀 How to Invest in Step-Up Bonds

  1. For G-Secs: RBI Retail Direct portal (www.rbiretaildirect.org.in)
  2. For corporate bonds/NCDs: NSE/BSE primary market during NFO period
  3. Secondary market: through Demat account or bond platforms (Wint, GoldenPi)
  4. Minimum investment varies; check prospectus

💰 Tax Treatment (India)

Gains taxed as per applicable income tax slab or capital gains rules
Consult a tax advisor for your specific situation
Disclaimer: This page is for educational purposes only and does not constitute financial advice. Returns shown are indicative historical ranges and not guaranteed. Consult a SEBI-registered investment advisor before investing.
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