Corporate Bonds:
These are issued by private corporates and are available for different tenures and coupon rates. They can be invested in for annual interest payouts.

Government Bonds:
These are issued at a fixed rate and backed by the Government of India. Being a secured return, the rate of interest maybe comparatively lower.

Tax-Saving & Tax-Free Bonds:
These are issued by the government/railways/NHAI, etc for providing tax-saving to investors. They are for a longer tenure but provide tax exemptions along with normal rate of interest.

Capital Gains Bonds:
An investor can remove his tax burden on long-term capital gains arising on sale of any asset, if the amounts are invested in certain specific bonds like Rural Electrification Corporation (REC) and National Highway’s Authority of India (NHAI).