Yah baat sabko pata hai ki stock markets are really big in terms of the volume of transactions, as well as the number of individual traders. In fact, the global equity market is valued at over 50 trillion dollars. In the light of this fact, it is very interesting to note that the global bond market is, in fact, valued at a hundred trillion dollars. And yet not a lot of people know what the bond market is, or understand what it exists for.
Therefore, in this podcast, we will discuss the purpose of the bond market, the various players who are active in the bond market, and how investors make money in the bond market.
National governments and corporations raise capital for long-term, capital-intensive projects through the bond market. In the primary market for bonds, governments and corporations issue fresh bonds that the investors can buy.
The price at which the bonds are sold is called the face value. In exchange for putting their money down for the bond, the investors are assured regular interest payments by the bond issuer. Once the bonds are traded in the primary market, they can be traded in the secondary market. Secondary market mein bond ka price supply aur demand par depend karega. It’s possible ki bond face value se zyada price mein bike, ya phir discounted price mein.
Jab Koi government infrastructural project uthati hai, to uske funds taxes aur debt se raise karti hai. The bond market is one of the ways the government creates fresh debt. That's the reason the bond market is also called the debt market.
Bond market ko fixed income market bhi kahate hai. Iski vajah yah hai ki bond ownership ke through regular interest income mil sakta hai. Aur phir, bond ke maturity per Jo principal amount invest kiya tha vah bhi pura wapas milta hai.
Therefore, investing in bonds is a good way for retail investors to diversify their income.
Bonds can be purchased through mutual funds as well as through online platforms like the NSE goBID created and maintained by the National stock exchange.
Corporations issue bonds to raise capital for expanding into new markets or for introducing new goods and services. Exchange traded funds are a type of mutual funds that make it very easy for retail investors to find and invest in low risk bonds.
When you buy a bond from the issuer of the bond itself, then that transaction takes part in the primary market for bonds.
However when you buy a bond from another retail trader then you are transacting in the secondary market for bonds. Governments at all levels issue bonds. Bonds issued by the central government are the most popular - however, state governments and even municipal governments issue fresh bonds. These bonds issued by regional governments can also be trusted upon to deliver regular and reliable returns. Aur phir aap municipal bonds khareed kar Apne locality ke infrastructural aur social welfare development main part le sakte hain.
Equity market mein invest karne ka sole motive profit hota hai. But while buying bonds, you can also support the economic development of the larger community as well.
Retail aur institutional investors ko dusri investment options se khud ki taraf attract karne ke liye government kafi bar tax free bonds bhi issue karti hai. Agar aap tax free bonds lete Hain to us mein se jo aapko interest income milta hai, vah completely tax free hota hai. Uss bond mein se aapka jitna bhi earning hai use per kuchh bhi taxes nahin lagenge. The revenue collected through the sale of such bonds goes into the construction of highways, railways and electric grids.
A bond’s value is influenced by its yield as well as its rating by independent rating agencies like Moody’s, Standards and Poor, and Fitch. A bond’s yield is simply the interest income you can expect to make on the bond. Yield to maturity ye measure karta hai ki agar aapne bond mature hone tak usse trade nahin kiya, to aapka total interest income - over the lifetime of the bond - Kitna hoga. Beyond this, the rating of the bond also matters.
Rating agencies take into account the risk of default when they rate a bond. Developed economies like the US and Germany issue bonds that come with very low risk. Some people however, like to invest in growing market bonds. These bonds are issued by emerging markets, and they come with higher yields. So the potential profit you can make is greater but the bond also carries a greater inherent risk. This is why bonds issued by emerging markets come with lower ratings. Ye bonds unn investors ke liye sahi hai jinka risk appetite high hota hai. On the other hand, conversative investors, who are looking for stable returns, should look to get bonds with higher ratings.
चलिए, एंजेल वन की तरफ से आपको आज के अलविदा. ये podcast शेयर करना ना भूलियेगा - याद रखियेगा की ज्ञान बाटने से बढ़ता है । और फिर अंत में तोह financial markets एक ऐसी university है जिसमे कोई professor नहीं, सब students ही है ।