Should the Middle Class Invest in Bonds? Here’s Why It Might Be a Smart Move

When it comes to saving and growing money, India’s middle class has long relied on fixed deposits and gold. But with inflation eating into returns and stock markets swinging wildly, many are now asking: Should we be looking at bonds?

The answer, according to financial experts, is a clear yes—if you want steady income and lower risk.

Also Read: India bond yields rise on borrowing plan but end flat for the week | Republic World

What Are Bonds and why do they matter?

Bonds are fixed-income securities issued by corporations, municipalities, or governments to raise capital. They are basically loans you give to companies or the government. In return, they pay you interest regularly and return your money after a fixed period. Unlike stocks, which can rise and fall sharply, bonds offer more stable returns.

Are they better than fixed deposits?

While fixed deposits are safe, their interest rates often don’t beat inflation. Some high-rated corporate bonds and government bonds offer better returns without much extra risk. Moreover, with online platforms like Zerodha and GoldenPi, buying bonds is now as easy as ordering groceries.

Is it a safer bet?

No, not all bonds are safe. Before investing, one should look at the bond’s credit rating (AAA and AA are considered strong), and try to spread your money across different bonds and time periods. Experts also suggest avoiding very long-term bonds if interest rates are rising.