Investing in Public Sector Undertaking (PSU) bonds can provide a stable source of income to investors. PSU bonds are issued by government-owned companies and are considered to be relatively safer than other fixed-income investments. In this blog, we will discuss the top-performing PSU bonds of the year.
NHPC Limited: NHPC Limited is a hydroelectric power generation company. Its bonds have a credit rating of AAA and offer an interest rate of 6.67% per annum. These bonds have a tenure of 10 years and are listed on the BSE.
Power Finance Corporation Limited: Power Finance Corporation Limited is a leading lender to the power sector in India. Its bonds have a credit rating of AAA and offer an interest rate of 6.87% per annum. These bonds have a tenure of 15 years and are listed on the BSE and NSE.
National Highways Authority of India: National Highways Authority of India is responsible for the development, maintenance, and management of national highways in India. Its bonds have a credit rating of AAA and offer an interest rate of 7.09% per annum. These bonds have a tenure of 10 years and are listed on the BSE.
Indian Railway Finance Corporation Limited: Indian Railway Finance Corporation Limited is a dedicated financing arm of the Indian Railways. Its bonds have a credit rating of AAA and offer an interest rate of 6.8% per annum. These bonds have a tenure of 15 years and are listed on the BSE and NSE.
Power Grid Corporation of India Limited: Power Grid Corporation of India Limited is a state-owned power transmission company. Its bonds have a credit rating of AAA and offer an interest rate of 7.14% per annum. These bonds have a tenure of 10 years and are listed on the BSE and NSE.
Conclusion:
Investing in PSU bonds can provide a stable source of income to investors. The top-performing PSU bonds of the year are those that offer a good interest rate and have a high credit rating. Investors should carefully evaluate the issuer’s financial position and credit rating before investing in PSU bonds. It is essential to consider the credit rating system in conjunction with other factors such as interest rates, liquidity, and investment horizon to make an informed investment decision. Overall, PSU bonds can be a good investment option for those who are looking for a fixed-income investment option with low risk.