Public Sector Undertaking (PSU) bonds are issued by government-owned corporations and are considered a secure investment option due to the backing of the government. These bonds offer a fixed interest rate and typically have lower risk compared to corporate bonds, making them attractive to risk-averse investors. PSU bonds provide a steady stream of income and are often issued with favorable terms, including tax benefits on the interest earned. The government’s backing offers an added layer of security, as the likelihood of default is significantly lower compared to private sector entities. Investors should consider the specific PSU issuing the bonds, as well as the bond’s tenure and interest rate, when making investment decisions. PSU bonds can be a good choice for those seeking reliable income with minimal risk, and they can also help diversify a portfolio that may be heavily weighted in other asset classes. Overall, PSU bonds are a prudent investment for those prioritizing safety and stability while still looking for predictable returns.