How to Invest in Corporate Bonds in India
Putting money into corporate bonds has turned into a strategic move for Indian investors seeking to spread their investments and generate consistent returns. Thanks to advanced platforms like Aspero’s bond investing portal, the journey is now more available, clear, and simple to use.
Understanding Corporate Bonds
Corporate bonds are debt securities issued by businesses use to fund their operations. Investors loan capital to firms and, in return, receive periodic interest payments until the bond matures. These differ from government bonds and often offer higher returns due to the additional credit risk involved.
Benefits of Investing in Corporate Bonds
1. Better Interest: Many premium-yield corporate bonds provide higher interest rates than fixed deposits or public sector instruments.
2. Regular Income: Bonds provide fixed returns through interest, suiting income-focused investors.
3. Tailored Risk Profiles: By choosing secured and investment-grade corporate bonds, investors can align their risk appetite to suitable bond products.
4. Capital Preservation: For conservative 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 safe and seamless. Submit your KYC documents to begin investing.
3. Filter and Pick the Best Options
You can browse a wide range of listed bonds by filtering for maturity, coupon rate, issuer type, and risk level. Compare returns and ratings Why Invest in Bonds? for each bond.
4. Make Your Investment
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: Review the company’s credit rating before investing. For low-risk investments, 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 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, build a stable income stream, or diversify across different asset classes, Aspero’s bond investment platform is your ideal partner.