So, you know that bonds are fixed-income securities that offer interest. You may also know that they are debt instruments and that investing in bonds helps with capital protection. You may have also heard that bonds are an effective way to hedge stock market volatility. But do you know these five facts about bonds in India?
1. The Indian bond market is almost as big as the equity market
Many investors believe bonds in India to be a small part of the financial markets, but facts will tell you otherwise. As of 2020, the size of the Indian bond market was $2 trillion, which is not too far behind the Indian equity market cap of $3.2 trillion. The overall bond market in India has been growing at a rapid pace – at a Compounded Annual Growth Rate (CAGR) of 14.68% between 2010 and 2020.
