Thence

• HNIs are driven by the fact that bonds grow at a higher rate than bank FDs. They have a lot of income to put into long term bond investments which eventually give high returns.

• Bonds offer a lot of liquidity to bond investors - these investors can se such bonds in these markets at any point of time and recover their money.

• Retirees rely on the income generated by bonds & are able to predict income for later years with a greater degree of certainty. An investor who still has many years until retirement has plenty of time to make up for any losses from periods of decline in equities.

• Older you get, lesser is the risk one is willing to take. Pension income, what one relies on ofter retirement, and most often than not, prohibits them from living the same lifestyle they lived before retiring.

• New investors believe parking money in the bank is a start, but it's not going to give you any return. With bonds, aspiring college students can predict their investment earnings and determine the amount they can have to contribute to accumulate their tuition by the time college starts.

• Bonds are generally seen as secure (safe) investments. Bonds are typically considered safer than equity. Government bonds are seen as nearlv risk free instruments. Therefore, the rate of return offered by government bonds is often considered risk free return this return is be used as a benchmark to assess returns offered by other financial instruments.