Is there any lock-in period in bonds?

QnA Discussions
1

Is there any lock-in period in bonds or can I exit whenever I want?

2

not exactly lock-in like FD
but exiting isn’t that easy either

3

so like what happens if I need money urgently

4

i had the same doubt before investing
thought it’ll be flexible but seems not that simple

5

yeah you can sell technically
but finding buyer is the issue

6

so basically not locked but not liquid also

7

yeah that’s the best way to put it

8

i think of it more like commit till maturity and then anything before that is a bonus

9

That’s actually a good way to approach it. Liquidity exists in theory, but not always in practice.

10

makes sense
so better not put emergency money here

11

yeah definitely not for emergency

12

okay that clears it up

13

While there is no lock-in, there is very less liquidity in the market. You can buy a bond and try to sell it via secondary markets. I’ve tried selling mine via Groww. It works some times. But inherently there is very less liquidity. Would not recommend relying on bonds for liquidity unless you buy a lot like 10L of a particular bond.