New York, New York (PressExposure) June 02, 2011 -- Investment in corporate bonds has increased but still, there exists a section of population, which is not sure of its safety due to the distorted facts they are fed with. These instruments for saving are nothing but similar to lending money or as people call it, loan to an organization or a business.
The investor gives his/ her money to the company he/ she is investing. The company in return pays interest for the capital; the investor has put in the company. The re-payment date or the maturity date is fixed at the time of investment. BondsOnline is a professional firm dealing in this sector from years and aims at helping its associates in making the wise choices. This is why they have launched the first ever as-needed basis, which does not charge unnecessary funds from the subscribers like in other costly websites. The firm believes that if the necessary information can be attained by spending less then why should it load its customers with unjustified charges?
Corporate bonds primarily come in the multiples of 1000's. The interest rate is decided in the first stage of investment is paid to the investor on a regular basis- whether annually or semi-annually. Although this investment does not give much relief from the tax slab as the interest received is taxable under law but the interest received are generally higher than other forms of the investments. Corporate bonds are different from shares in a number of ways.
The biggest difference is the transfer of ownership. With corporate bond in hand, one cannot claim to be the owner of the company, as the sum invested is a loan for the company and the lender becomes a creditor. The market for these instruments is huge and is on an ever-increase with each passing day. The average daily trading crosses the figure of $23 billion.
These instruments are a safe investment option as these are based on the rating of a company. If a company has higher rating, it is bound to be a profitable deal. Moreover, a steady and regular income is promised in such investment instruments. Liquidity too is high as one can sell these as and when required.