PSU Bonds: Secure Returns with Government-Backed Assurance
Public Sector Undertaking (PSU) bonds are fixed-income securities issued by government-owned corporations to raise capital for infrastructure and development projects. These bonds are widely regarded as safe investment options due to the backing of the central government. In this blog, we explore the key features of PSU bonds, including their structure, interest rates, tenure, and credit ratings. Investors will learn how PSU bonds offer a compelling balance of security and moderate returns, making them ideal for conservative portfolios. The blog also compares PSU bonds with other government securities and corporate bonds to help investors make informed choices. We delve into the pros and cons, tax implications, and best practices for buying and selling PSU bonds, whether in the primary or secondary market. With detailed examples and case studies, this blog helps demystify the process of investing in PSU bonds while illustrating their relevance in a diversified investment portfolio. For risk-averse investors seeking government-backed reliability and steady income, PSU bonds are an excellent addition to long-term financial planning.