ESSENTIAL THINGS YOU MUST KNOW ON HOW TO BUY CORPORATE BONDS IN INDIA?

Essential Things You Must Know on How to Buy Corporate Bonds in India?

Essential Things You Must Know on How to Buy Corporate Bonds in India?

Blog Article

Investing in Corporate Bonds in India


Image

Investing in corporate bonds has turned into a strategic move for Indian investors wanting to diversify their portfolio and earn consistent returns. Thanks to contemporary platforms like Aspero’s bond investing portal, the process is now more accessible, clear, and simple to use.

What Are Corporate Bonds


Corporate bonds are fixed-income instruments issued by businesses use to fund their operations. Investors lend money to these companies and, in return, receive regular interest until the bond matures. These differ from government bonds and often provide better yields due to the additional credit risk involved.

Benefits of Investing in Corporate Bonds


1. Attractive Yields: Many high-yield corporate bonds provide higher interest rates than bank deposits or public sector schemes.

2. Steady Earnings: Bonds provide predictable returns through interest, suiting income-focused investors.

3. Risk-Adjusted Options: By selecting secured and investment-grade corporate bonds, investors can align their risk appetite to suitable investment opportunities.

4. Safety-Oriented: For risk-averse investors, highly rated bonds from NBFCs and other industries can be a secure option.

Step-by-Step Guide on How to Invest in Corporate Bonds


1. Select a Trusted Platform
Begin with Aspero’s bond investment section, which offers a curated marketplace of corporate and government bonds.

2. Complete KYC Verification
On Aspero, the onboarding process is safe and seamless. Complete your Know Your Customer (KYC) requirements to begin investing.

3. Filter and Pick the Best Options
You can browse a wide range of listed bonds by narrowing down for maturity, coupon rate, issuer type, and risk level. Compare returns and ratings for each bond.

4. Make Your Investment
After choosing your preferred bond, complete the investment through Aspero’s secure payment gateway. The bonds are credited to your demat account.

5. Monitor Your Investments
Use your Aspero dashboard to monitor interest payouts, maturity timelines, and overall performance.

Things to Keep in Mind


1. Credit Risk: Check the company’s credit rating before investing. For safer bets, stick to AAA – A rated corporate bonds.

2. Interest Rate Sensitivity: Bonds are affected by market rate changes, which can impact resale value.

3. Exit Options: Check if the bond is listed and actively traded for better resale potential.

4. Tax Planning: Interest income is taxable. Aspero’s blog offers guidance on tax implications.

Conclusion


With the proper knowledge and tools, investing in corporate bonds is not only accessible but potentially lucrative. Platforms like Aspero simplify every step — from discovery to execution — making bond investment feasible for both retail and HNI investors.

Whether you're looking to explore secured bonds, build a stable income stream, or diversify across different asset classes, Aspero’s bond investment platform is your How to Buy Municipal Bonds in India? one-stop solution.

Report this page