00:04Are you also waiting for market correction? Do you also think that Nifty will reach 2200?
00:12The weekly gap may get filled in the future and you are holding cash in anticipation of this, but you
00:19He does not want to invest in the market right now.
00:22So the question arises here that where to transfer this cash till then because cash can only be deposited in empty
00:28Instead of holding, we can consider such an option where we can get some return and when required, we can trade in the market.
00:35Capital can be used when the opportunity arises
00:38This is where government T-wills and corporate bonds come in, but buying a bond just because of the high interest rate is not a good idea.
00:47So today let us understand in very simple language where we can invest, for how long and how much return we will get.
00:56It is possible
00:56What is risk and how can we withdraw money when needed, let us first talk about our objective.
01:04Understand that if my objective is to move money from the market opportunity, then my primary goal is not maximum return.
01:12For me, four things are most important: risk, return, liquidity and tenure, that is, how safe is the money.
01:21What is the return, how quickly can the money be recovered upon completion of the investment, and for how long will the money remain invested?
01:28Secondly, let us know what are government treasury bills.
01:32T-bills i.e. treasury bills are short term instruments of the government of India, common maturities are 91 days, 182
01:42days, 364 days, if you need to transfer cash for a relatively short period then treasury bills are an option
01:50can
01:51Number 3, where to buy treasury bills, there are two practical roots, first RBI Retail Direct, through this individual investors, treasury
02:00bills and government securities
02:03The second one is NAC Go Bid, through which retail investors can also invest in government securities and treasury bills.
02:12Are
02:12The minimum investment generally starts from тВ╣10,000 here.
02:16Fourth, how do you get a return on treasury bills? Treasury bills are usually purchased at a discount.
02:22And on maturity you get the face value, your return is the difference between the purchase price and the maturity value.
02:30RBI data for September 2026 showed annualized yields at 5.21% for 91 days, 5.21% for 182 days
02:39.62%, was 5.91% for 364 days
02:43But remember, these are market yields, not guaranteed returns.
02:47Yields may change with each auction
02:50Fifth, how to withdraw money from treasury bills?
02:53If you hold the treasury bills till maturity, then repayment is made on maturity.
02:58If money is needed before that, government securities can be sold in the secondary market.
03:05But the market price may change at that time.
03:09Hence, the actual return may vary if sold early.
03:14Sixth, now corporate bonds
03:16In corporate bonds, you lend money to a company.
03:21The company pays interest according to the term of the bond.
03:24And returns the principal as per schedule
03:27But the payment structure of each corporate bond may be different.
03:32How to get interest and principal back
03:35Some bonds pay monthly interest.
03:38Some may also offer quarterly interest.
03:42And in some, half yearly or annual interest is available.
03:46Principal can also be returned in a different way
03:49In some bonds, the full principal is received at maturity.
03:52And in some bonds, the principal is returned to you gradually.
03:56Quarterly interest for lending plus a part of the principal
04:01This means that your outstanding capital decreases every quarter.
04:06Therefore, before buying a bond, make sure that the interest rate is low.
04:11principal will get less
04:13The entire principal will be available on maturity.
04:15Or what is the final maturity date of the parts?
04:18Now let us come to how much return can be expected in corporate bonds.
04:21There is no fixed percentage in corporate bonds.
04:25Yield depends on
04:27issuer, credit rating, maturity and market condition
04:32Higher risk bonds may show higher yields
04:36but remember
04:37higher YTM is equal to not higher safety
04:40And YTM is not a guaranteed return
04:43Therefore, do not buy bonds just by looking at 9%, 10%, 11%.
04:48First, understand what risk we are taking to get this much return.
04:52Namma, the main risk in corporate bonds, understand 3 important risks
04:57Credit risk, failure to repay company interest or principal on time
05:02Liquidity risk: You want to sell a bond but you can't easily find a buyer.
05:07Interest rate risk: changing interest rates can change the market price of the bond.
05:12Therefore, selling before maturity can result in both profit and loss.
05:1810. What to check before buying a corporate bond
05:22Credit ratings are generally AAA, AA+, AA, AA-A+, AA-B.
05:30AAA is in the highest rating category, AAA does not equate to zero risk
05:35It is also important to check reports and outlook.
05:39Also check the financial health company to see how much debt it has.
05:42What is your net worth, is your debt increasing or decreasing?
05:45Don't just look at cash flow, profit
05:48Whether the company is generating actual cash or not
05:52How comfortably is the interest coverage company covering interest payments?
05:56Also check the relevant leverage and interest coverage ratio.
06:01Is the bond secured or unsecured?
06:03If it is secure then what is the security cover
06:06But secured bond is not equal to 100%
06:09When do you need maturity and liquidity?
06:13When will the bond mature and it must be read
06:17How easily can one invest in the secondary market?
06:20payment schedule, monthly or quarterly interest
06:24principal repayment in full or partially
06:27Please check these details in the official bond documents and repayment schedule.
06:33Where to buy corporate bonds
06:35For retail investors, corporate bonds
06:37Savings can explore regulated online bond platform providers, applicable stock exchange routes and authorized intermediaries
06:49Before investing money on any platform, verify its savi registration and regulatory status.
06:55For bond information
06:57Also check sources like official savi investor resources and bond central
07:03Let's say I have 5,000,000 cash.
07:06I don't want to invest all my cash in equity.
07:08My objective is to keep capital available until a market opportunity arises.
07:14So I will not dump the entire 5,000,000 in a long term corporate bond just by giving a higher YTM
07:21Short term government instruments like treasury bills can also be considered depending on your liquidity requirement.
07:30And if the risk capacity and time horizon are suitable, then it can also be considered in high quality corporate bonds.
07:38Is
07:38But there is no fixed allocation formula; it will depend on the risk profile, time horizon, liquidity and requirement.
07:48Now let us come when the market opportunity comes, suppose in future Nifty according to my analysis is around 20,200.
07:57comes around
07:57Then my capital should be available but keep in mind there is no guaranteed bottom of 20,200
08:05The market may reverse or even go below that before it gets there.
08:10Therefore, staggered deployment can be done in equity as per your plan.
08:16The final message is this, so if you are waiting for market correction and want to park cash
08:24want to
08:25So don't just look at the interest rate, look at the risk, return, liquidity, tenure, payment schedule on the government site.
08:35Understand routes like RBI retail direct and NAC go bid
08:40Check savi regulated platforms and official bond information by going to corporate bonds
08:48And before buying a bond, definitely check its rating, financials, depth, cash flow, interest coverage, security, maturity, liquidity, repayment schedule.
09:01do
09:02Disclaimer: This video is for educational and informational purposes only. It does not cover any bond, a stock or
09:09This is not a recommendation to buy or sell any investment product.
09:14The 2200 gap is just a personal market scenario, not a guaranteed target or bottom, as bond yields and market prices change.
09:22can
09:23Before investing, please understand your risk profile, liquidity requirement, tax and related product documents.
09:30Thank you for watching
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