BENGALURU: Over past few decades, the Indian financial market has witnessed many ups and down in economic statistics. Bonds are not always the safest instrument as returns on bonds cannot be assured at any time.

The opening up of the financial market since few years has totally changed the scenario of the Indian Financial market by influencing several foreign investors to invest in the Indian bond market. Many public sector or private sector companies issue bonds which are instruments of indebtedness of bond holders.

It is a debt security where the holder has to pay as debt to the issuer depending on the rules entitled in the bond. As per the data compiled by moneycontrol.com, there are five myths about bonds that can spoil your investment strategies. Let’s go through these points:

About Safer Investment: Rather than equities, bonds are sometimes considered to be safer investment assets as they are debt instruments. The rating of the bonds plays an important role to judge how safe it is.

Unrated bonds comes up with high interest rates but should be avoided as they are very complex to handle and sometimes they are very risky. The ratings of rated bonds never change on day to day basis and depend on the issuer. Even government bonds are also safe as compared to other bonds of similar types in the financial market.

Read More: 7 Demerits of Credit Cards with Low Interest

How Will Inflation Targeting Boost India's Economy?