The settlement amount of a bond, displayed on the website, consists of both the market price and accrued interest, which can cause fluctuations. Here's how it works:
1. Market Price:
The market price of a bond changes daily due to market dynamics, reflecting factors such as supply and demand, interest rate variations, and economic conditions. As a result, if there's a delay of a day or more between adding bond units to your cart and completing the purchase, the market price might change, affecting the settlement amount.
2. Accrued Interest:
Bonds accumulate interest daily until the purchase date. When you add bonds to your cart and buy them after a few days, the accrued interest will be included in the settlement amount. This interest accumulates from the time you added the bond to your cart until the actual purchase date.
5paisa ensures transparency and accuracy by providing real-time updates on bond prices and accrued interest. This helps you stay informed about any changes in the settlement amount, enabling you to make timely and well-informed investment decisions. Our platform offers detailed insights and alerts, ensuring you understand how market fluctuations and accrued interest impact your bond investments.