How to Invest in Corporate Bonds in India
Putting money into corporate bonds has turned into a wise 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 private and public companies use to raise capital. Investors lend money to these companies and, in return, receive periodic interest payments until the bond matures. These differ from government bonds and often offer higher returns due to the added credit risk present.
Benefits of 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. Tailored Risk Profiles: By selecting secured and investment-grade corporate bonds, investors can match their risk appetite to suitable investment opportunities.
4. Capital Preservation: For conservative investors, highly rated bonds from NBFCs and other sectors can be a secure option.
Step-by-Step Guide on How to Invest in Corporate Bonds
1. Select a Trusted Platform
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 filtering for maturity, coupon rate, issuer type, and risk level. 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 credited to your demat account.
5. Track and Manage Your Portfolio
Use your Aspero dashboard to track interest payouts, maturity timelines, and portfolio status.
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. Rate Fluctuation: Bonds are sensitive to market rate changes, which can impact resale value.
3. Exit Options: Check if the bond is listed and liquid for easier exit.
4. Taxation: Interest income is taxable. Aspero’s blog offers guidance on tax implications.
Conclusion
With the right information and platform, investing in corporate bonds is not only possible but highly rewarding. Platforms like Aspero make the process easy — from discovery to execution — making bond investment feasible for both retail and HNI investors.
Whether you're looking to explore secured bonds, plan for regular income, or broaden your portfolio, Aspero’s bond investment platform is How to Buy Government Bonds in India? your ideal partner.