India, Jan. 20 -- The size of the Indian bond market is huge, running into a few trillion dollars. Within this huge market, the government, corporates, and other entities issue various types of bonds.

For a retail investor, it can be overwhelming to understand the various types of bonds and which one to choose for investment. In this article, we will look at the categorisation of bonds based on various parameters.

The categorisation of bonds, based on various parameters, can be done as follows.

1. Issuer: Various entities issue bonds in the debt market. Some of these include:

Bonds issued by the central government, state governments, and municipal corporations are considered less risky. Central government bonds carry a sovereign guara...