What are Capital-Indexed Bonds?

 Capital Index bonds are a type of inflation-indexed bonds.

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    • Inflation-indexed bonds are debt investments that you invest in for more than 12 months
    • You can get returns considering inflation for two years
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    They can give returns equal to the inflation rate for two years

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    The base coupon for these bonds can rise and fall with the inflation figures

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    The basic purpose of capital-indexed bonds is to catch up with the current inflation (Consumer Price Index – CPI)

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    These bonds are issued by the Reserve Bank of India (RBI) on behalf of the Government of India (GOI)

Keep reading to know more about the characteristics of Capital-Indexed bonds

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