How to Invest in Corporate Bonds in India
Putting money into corporate bonds has turned into a smart move for Indian investors seeking to diversify their portfolio and generate stable returns. Thanks to modern platforms like Aspero’s bond investing portal, the journey is now more accessible, clear, and user-friendly.
Understanding Corporate Bonds
Corporate bonds are fixed-income instruments issued by businesses use to raise capital. Investors loan capital to firms and, in return, receive periodic interest payments until the bond reaches maturity. These differ from government bonds and often provide higher returns due to the added credit risk involved.
Benefits of Investing in Corporate Bonds
1. Attractive Yields: Many premium-yield corporate bonds offer higher interest rates than bank deposits or public sector schemes.
2. Regular Income: Bonds generate fixed returns through interest, suiting income-focused investors.
3. Risk-Adjusted Options: By choosing 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 secure haven.
Steps 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 secure and efficient. 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. You can also compare returns and ratings for each bond.
4. Execute the Transaction
After choosing your preferred bond, execute the transaction through Aspero’s secure payment gateway. The bonds are transferred to your demat account.
5. Track and Manage Your Portfolio
Use your Aspero dashboard to track 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. Taxation: Interest income is taxable. Aspero’s blog offers tips for tax-efficient planning.
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 looking to explore secured bonds, What are Bonds & How to Invest in Bonds? build a stable income stream, or diversify across different asset classes, Aspero’s bond investment platform is your ideal partner.