How to Invest in Corporate Bonds in India
Putting money into corporate bonds has turned into a wise move for Indian investors wanting to diversify their portfolio and earn stable returns. Thanks to modern platforms like Aspero’s bond investing portal, the journey is now more available, clear, and simple to use.
What Are Corporate Bonds
Corporate bonds are fixed-income instruments private and public companies use to raise capital. Investors lend money to these companies and, in return, earn regular interest until the bond reaches maturity. These are unlike government bonds and often provide higher returns due to the additional credit risk involved.
Why Consider Investing in Corporate Bonds
1. Better Interest: Many premium-yield corporate bonds provide better interest rates than bank deposits or public sector instruments.
2. Regular Income: Bonds generate predictable returns through interest, suiting income-focused investors.
3. Risk-Adjusted Options: By selecting secured and investment-grade corporate bonds, investors can match their risk appetite to suitable bond products.
4. Capital Preservation: For conservative investors, highly rated bonds from NBFCs and other industries can be a safer option.
Steps to Invest in Corporate Bonds
1. Choose a Reliable Portal
Start by visiting 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 efficient. Submit your KYC documents to begin investing.
3. Choose the Right Bonds
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. Execute the Transaction
After selecting your preferred bond, execute the transaction through Aspero’s secure payment gateway. The bonds are transferred to your demat account.
5. Monitor Your Investments
Use your Aspero dashboard to track interest payouts, maturity timelines, and overall performance.
Important Considerations
1. Credit Risk: Check the company’s credit rating before investing. For low-risk investments, stick to AAA – A rated corporate bonds.
2. Interest Rate Sensitivity: Bonds are sensitive to market rate changes, which can influence resale value.
3. Exit Options: Check if the bond is listed and How to Buy Government Bonds in India? actively traded for easier exit.
4. Tax Planning: Interest income is taxable. Aspero’s blog offers tips for tax-efficient planning.
Final Thoughts
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 interested in secured bonds, plan for regular income, or broaden your portfolio, Aspero’s bond investment platform is your ideal partner.