Masala Bonds: Bonds issued outside India which denominated in Indian currency, rather than the local currency. Masala is an Indian word and it means spices. The term was used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India. The major benefit of this bond is that the currency risk is not borne by the issuer.

Housing and Urban Development Corporation Limited Bonds:

• These bonds are issued by HUDCO with India.
• Safe Investment, High Returns, Easy Liquidity. 
• Tax benefit under Section 80C (2) (xvi)(a) of Income-tax Act, 1961 for deposits with a minimum lock-in period of 5 years. Tax Benefits – Trust deposits are specified investment under section 11(5) (ix) of Income Tax Act, 1961.No tax deduction at source from interest paid/credited up to Rs. 5,000/- in a financial year.

Zero Coupon Bonds: A bond which carries no interest, but which is issued at a discount and so provides a capital gain when it is redeemed at its face value.

• Bonds are usually compared with other fixed income options by investors looking for minimal risks.
• As compared to other fixed-income options, these bonds offer good returns on maturity while keeping the option of selling them on the secondary market open, if the interest rates decline sharply.
• Another important feature of notified zero coupon bonds is that investors do not have to pay any tax on interest since the bonds are issued at a discounted price and redeemed at face value.
• They are only subject to capital gains tax.

Floating Rate Notes: This is also one type of bond. Floating Rate Notes are simply investment vehicles that have interest rates that fluctuate approximately every six months. At that time, the interest rate resets to equal the short-term interest rate plus a specific percent that was determined when the floating rate b-note was issued.

• They protect against interest rate hikes and they have higher yields than fixed bonds.
• Floating rate notes have little interest rate risk.
• A company or government entity can issue floating rate notes.
• Notes tend to have maturities of approximately five years.

Know the risk of floating rate notes
The price of floating rate notes is risky. This risk is highly associated with the maturity rate and issuer credit quality. Therefore, interest rate increases are more beneficial to the note holder than interest rate decreases.

Green Bond: A Green bond is a recent trending instrument, an income investment in which an investor funded money to any corporate or governmental entity which borrows the funds for a defined period of time at a variable or fixed interest rate for mobilizing funds to green projects like Wind Power, Solar Power, Biomass Power, Small Hydro Power, Waste-to-Power, climate change adaptation, sustainable land use including sustainable forestry and agriculture and afforestation, biodiversity conservation etc.

Green bonds, public or on a private placement basis will be listed on a recognized stock exchange, will be traded and such trades will be cleared and settled in the recognized stock exchanges subject to conditions specified by the Board, if green bonds are traded over the counter.