Plan your investment
What Our Plans Cover
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Bonds with proceeds allocated to e...
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Fixed coupon at the stated rate
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Return of face value at maturity
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Issuer reporting on the use of pro...
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Holding in your demat account
Who Can Consider This Plan?
- Indian resident individual, HUF, trust, firm or company
- NRIs, subject to the specific issue permitting NRI investment
- A demat account for holding the securities
- PAN and completed KYC
- Minimum investment as specified in the issue terms
What May Not Be Covered?
- Any yield premium for the green label
- Any reduction in credit risk relative to the issuer's other debt
- Any tax benefit for the environmental purpose
- Guarantees about project outcomes
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading investments companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced investments professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A green bond is a conventional bond whose proceeds are earmarked for environmental projects — renewable energy, clean transport, water management, energy efficiency. The issuer commits to using the money for those purposes and to reporting on it.
Financially, a green bond behaves like any other bond from the same issuer. The credit risk is the issuer's credit risk, the interest rate risk is the same, and the yield is generally in line with the issuer's conventional debt. The green label describes where the money goes, not how the bond performs.
India has issued sovereign green bonds, and the framework for corporate green issuance has developed considerably. For investors who want their fixed income to fund specific outcomes, these provide a way to do that without accepting worse terms.
Who should consider it
Investors who want their capital directed towards environmental projects. Institutional investors with sustainability mandates. Any fixed income investor for whom the use of proceeds matters alongside the return.
Benefits
- Proceeds earmarked for defined environmental projects
- Issuer reporting on how the money was used
- Credit risk and yield comparable to the issuer's conventional debt
- Sovereign green bonds available alongside corporate issues
- Growing issuance, improving choice and liquidity
- Meets sustainability mandates for institutional investors
What is included, and what is not
Read the right-hand column first. It is the one that tends to surprise people later.
Included
- Bonds with proceeds allocated to eligible green projects
- Fixed coupon at the stated rate
- Return of face value at maturity
- Issuer reporting on the use of proceeds
- Holding in your demat account
Not included
- Any yield premium for the green label
- Any reduction in credit risk relative to the issuer's other debt
- Any tax benefit for the environmental purpose
- Guarantees about project outcomes
Terms vary between providers and between plans from the same provider. The offer document you receive is what governs — we will walk you through it before you commit.
How it works with us
- 1 We separate the two risks before anything else Credit risk is whether you get repaid. Rate risk is what the bond is worth if you sell early. Different risks, different answers.
- 2 Horizon matched to maturity A bond held to maturity behaves very differently from one sold in year two. That decision comes before choosing the issuer.
- 3 Rating and issuer examined properly A yield well above the market is telling you something. We read the rating rationale, not just the letter.
- 4 Purchase through the exchange or a registered platform Bonds settle into your demat account. We handle the mechanics and confirm what you actually bought.
- 5 Coupons tracked, maturity diarised Interest dates, reinvestment and redemption. Bonds are simple to hold and easy to forget about.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Assess the credit exactly as you would any other bond from the same issuer. The green label describes the use of proceeds, not the safety of the instrument.
- Read the framework and the reporting. The credibility of a green bond rests on how proceeds are allocated and verified, and standards vary between issuers.
- Do not expect a yield premium or a discount. Green bonds generally price in line with the issuer's conventional debt.
- There is no tax benefit attached to the environmental purpose. Interest is taxable in the ordinary way.
- If the environmental purpose is your reason for buying, the reporting matters as much as the coupon. Check what the issuer commits to disclose.
Documents required
- PAN card
- Aadhaar or other identity proof
- Address proof
- Demat account details
- Bank account proof for coupon and redemption credit
- Completed KYC with the intermediary
Frequently Asked Questions
Do green bonds yield less than conventional bonds?
Generally they price broadly in line with the issuer's conventional debt. There is no systematic premium to pay or discount to receive — the green label describes where the proceeds go, not the financial terms.
Are they safer than ordinary bonds?
No. The credit risk is the issuer's credit risk, entirely unchanged by the label. A green bond from a weak issuer carries exactly the risk that issuer's conventional debt does. Assess the credit the same way.
How do I know the money is actually used for green projects?
Through the issuer's green bond framework and its reporting on allocation and, often, impact. Standards vary, so the framework and the verification arrangements are worth reading if the environmental purpose is your reason for investing.
Is there a tax benefit?
No. Interest on green bonds is taxable in the ordinary way. The environmental purpose does not carry any tax concession.
Can I buy Indian sovereign green bonds?
India has issued sovereign green bonds, and they are accessible in the same ways as other government securities. Corporate green issuance has also grown, giving retail investors a reasonable range across the credit spectrum.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.