How to Invest in Corporate Bonds in India
Investing in corporate bonds has become a strategic move for Indian investors wanting to diversify their portfolio and generate consistent returns. Thanks to contemporary platforms like Aspero’s bond investing portal, the journey is now more available, transparent, and simple to use.
Understanding Corporate Bonds
Corporate bonds are fixed-income instruments private and public companies use to fund their operations. Investors lend money to these companies and, in return, earn regular interest until the bond matures. These are unlike government bonds and often provide higher returns due to the added credit risk involved.
Why Consider Investing in Corporate Bonds
1. Better Interest: Many high-yield corporate bonds provide higher interest rates than bank deposits or public sector schemes.
2. Regular Income: Bonds provide predictable returns through interest, making them ideal for income-focused investors.
3. Tailored Risk Profiles: By selecting secured and investment-grade corporate bonds, investors can match their risk appetite to suitable bond products.
4. Capital Preservation: For risk-averse investors, highly rated bonds from NBFCs and other industries can be a safer option.
Step-by-Step Guide on How to Invest in Corporate Bonds
1. Choose a Reliable Portal
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 secure and efficient. Complete your Know Your Customer (KYC) requirements to begin investing.
3. Choose the Right Bonds
You can explore a wide range of listed bonds by filtering 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 portfolio status.
Important Considerations
1. Company Reliability: Review the company’s credit rating before investing. For low-risk investments, stick to AAA – A rated corporate bonds.
2. Interest Rate Sensitivity: What are Bonds & How to Invest in Bonds? Bonds are affected by market rate changes, which can influence resale value.
3. Liquidity: Check if the bond is listed and liquid for easier exit.
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 highly rewarding. Platforms like Aspero make the process easy — from discovery to execution — making bond investment approachable for both retail and HNI investors.
Whether you're interested in secured bonds, plan for regular income, or broaden your portfolio, Aspero’s bond investment platform is your one-stop solution.