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 stable returns. Thanks to modern platforms like Aspero’s bond investing portal, the journey is now more accessible, clear, and simple to use.
What Are Corporate Bonds
Corporate bonds are debt securities issued by businesses use to raise capital. Investors loan capital to firms and, in return, earn periodic interest payments until the bond reaches maturity. These differ from government bonds and often provide better yields due to the additional credit risk present.
Why Consider Investing in Corporate Bonds
1. Better Interest: Many premium-yield corporate bonds offer higher interest rates than bank deposits or public sector schemes.
2. Steady Earnings: 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 secure option.
Step-by-Step Guide on How to Invest in Corporate Bonds
1. Choose a Reliable Portal
Start by visiting Aspero’s bond investment section, which features a curated marketplace of corporate and government bonds.
2. Complete KYC Verification
On Aspero, the onboarding process is safe and seamless. Complete your Know What Are Corporate Bonds? 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 selecting 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 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. Rate Fluctuation: Bonds are sensitive to 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.