Bonds are fixed-income securities in which the investor loans the money to an entity such as Government or Corporate companies. The investor can buy the bonds at a fixed or variable interest rate. Most of the bonds by the Government of India are offered at fixed interest rates. The money borrowed from the investor is used for government projects such as raising infrastructure for various sectors and expanding the business by the companies. 

Bonds are risk-free investment avenues that are less likely to lose money than stocks. It creates a steady income that it should be on your portfolio. Certain bonds provide tax benefits. 

Investing in bonds is much simpler than investing in equities because there is defined maturity. The income in bonds is payable yearly or half-yearly as a coupon or interest payment which is usually the face value of the bond. Your returns are fixed if you hold the bond till maturity.