The minimum investment required for bonds varies depending on the type of bond, the issuer, and the platform through which you invest. Here's a breakdown of the typical minimum investment amounts for various types of bonds:
1. Government Bonds
Government of India Savings Bond (GOI Savings Bond): The minimum investment is usually ₹1,000, and you can invest in multiples of ₹1,000.
Sovereign Gold Bonds (SGBs): The minimum investment is 1 gram of gold (which typically equates to around ₹5,000–₹6,000, depending on the price of gold). For subsequent investments, you can invest in multiples of 1 gram.
2. Corporate Bonds
The minimum investment in corporate bonds is generally higher. It can range from ₹10,000 to ₹1 lakh, depending on the bond's issuer.
For instance, most high-rated corporate bonds (e.g., from companies like Reliance, HDFC, or Tata) may have a minimum investment of ₹10,000 or ₹1 lakh.
3. Municipal Bonds
Municipal bonds issued by local government bodies or authorities may have a minimum investment amount that starts from ₹10,000 or ₹1 lakh.
4. Bonds Under Section 54EC (Capital Gain Bonds)
The minimum investment for Section 54EC bonds (issued by NHAI or REC) is typically ₹10,000 or ₹1,000, depending on the specific bond. However, to avail of tax exemptions, you cannot invest more than ₹50 lakh in these bonds per financial year.
5. Public Sector Bonds (PSU Bonds)
PSU bonds (like those issued by entities like BHEL, Power Finance Corporation, or Indian Railways Finance Corporation) often have a minimum investment requirement of ₹10,000 or more, though the specific amount depends on the issuer.
6. Bonds Traded on Stock Exchanges
For bonds that are listed on stock exchanges, the minimum investment is typically determined by the lot size set by the bond issuer. Lot sizes may range from ₹10,000 to ₹1 lakh, depending on the bond and exchange platform.
Key Takeaways:
For government and sovereign bonds: The minimum investment is usually low, starting from ₹1,000.
For corporate bonds: The minimum investment is often higher, typically starting at ₹10,000 or ₹1 lakh.
For municipal and PSU bonds: The minimum amount can vary but generally starts at ₹10,000.
Section 54EC bonds: The minimum investment is typically ₹10,000, and the maximum is ₹50 lakh per financial year to claim tax exemptions.
Always check the specific bond issue's terms and conditions to know the exact minimum investment requirement before investing.
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