Can You Sell Bonds Before Maturity? Liquidity, Exit & Penalties Explained

Can investors exit a bond before its maturity date? Vishal Goenka, Co-founder, Indiabonds, explains how bonds differ from fixed deposits when it comes to liquidity and premature exits. Unlike FDs, bonds can generally be bought and sold in the market before maturity, with the selling price depending on prevailing market conditions. The discussion also covers liquidity differences across bond types, how credit ratings and interest-rate movements can affect bond prices, and why investors should consider liquidity when selecting bonds for specific financial goals. Understanding these factors can help investors plan their fixed-income portfolio more effectively.