Infrastructure bonds are issued by governments or infrastructure financing companies, to pool money to fund infrastructure projects. Once the bond is sold, the issuer pays a regular and fixed interest rate to the investors who buy the bonds. The face value of the bonds will be paid to the investors on the maturity date.
How to buy infrastructure bonds online?
Bonds are issued by the government to raise money to fund projects related to public welfare and infrastructural development. To apply online, you need to have a Demat account and then follow the steps given below:
- To trade in infrastructure bonds, you must have your PAN number and your Demat account.
- You can thus invest in these bonds online through your trading account. The bonds can be applied for as soon as the government releases them, either in physical or dematerialized form.
- To begin with, you have to fill in your details in the online application form. Submit the self-attested copy of the PAN card. Also, fulfill the KYC procedure.
- Once your KYC is completed, you can invest in the bonds with a preferred lock-in period.
- On maturity, you can trade the bonds on the stock exchange.