Investing
Bond
A loan you give to a government or company that pays you fixed interest and returns your money later.
A bond is an IOU. You lend money to a government or company, they pay you regular interest, and return the principal on a fixed date.
Bonds are generally safer than stocks and give predictable income, which is why debt funds are built out of them.
The main risks are the borrower defaulting and interest rates changing, which affects a bond's resale value.
For example
A government bond paying 7% a year on ₹1L gives you ₹7,000 annually, then returns your ₹1L at maturity, assuming you hold it fully.