About Bondspe
Bondspe Technologies is India's #1 Fintech Company that enables individual investors to invest in Bonds and Debentures online. While Bonds are considered a reliable source of secondary income, and in some cases even primary income, traditionally, their availability has been restricted to Financial Institutions and High Net-Worth Individuals (HNIs) only. With Bondspe, we are committed to making Bonds and Debentures accessible to all retail investors. They can leverage this investment option with exceptional ease through our seamless online platform.
And before you start imagining our service charges, let us tell you upfront, ScaleRich doesn't charge its customers for any transaction, at least not as of now!
Now let us tell you about investing in bonds and debentures. First things first! What is Investing? Investing is nothing but apportioning a set amount of money towards the purchase of assets with the hope of making financial gains in the long term.
As an Individual, What is the Need for You to Invest?
The money you earn by working will almost always have a cap. After all, there's only so much salary hike that you can get, only so many hours a week that you can work, and only so much capital that you can invest in your business. While your income remains more or less constant, the same cannot be said for your expenses. As you progress in life, your responsibilities increase, and so does the need for spending money. Right from building a home to ensuring your children get the best of education, from paying for medical emergencies to planning your retirement and more – it all costs money, and a lot of it! It is for this very reason that investing makes sense. Not only does investing ensure that you have a secondary source of income that you can rely on, but it also forces you to set aside a sum of money regularly, thereby ensuring that you develop a financial discipline in the long run!
What are the Different Types of Investments?
While there are multiple types of investments for you to choose from, they can be largely classified under two categories – Active Investments and Passive Investments. As the names suggest, the former requires you to be on the front foot, have complete knowledge of the market dynamics, and put in time and effort towards the investment; the latter, on the other hand, allows you to invest your money without getting too involved in the process. In the case of Passive Investments, buy-and-hold is considered the go-to strategy, wherein once you invest, you hold out on the same for a said amount of time to enjoy the anticipated financial returns.
Let us take this opportunity to help you understand two of the investment options that we believe are both – Safe, Lucrative, and, more importantly – Passive! If you think like us, your guess is correct. We’re talking about Bonds and Debentures. Let us explore these two investment alternatives in detail.
What are Bonds and Debentures?
Bonds are issued by government entities, whereas Debentures are issued by a private company, public sector units, banks, and NBFCs. Bonds and Debentures are issued with the aim of raising capital, in return for which the borrower pays interest to the investor. At their core, Bonds can be said to be similar to loans, as they both mature on a stipulated date. Based on the terms and conditions specified at the time of issue – the investor can earn interest on the bond either at regular intervals.
What Are The Different Types Of Bonds and Debentures In India?
Here is the list of popular Bonds and Debentures available in India:
- Central Government Bonds
- State Government Bonds
- Municipal And Local Authority Bonds
- Corporate Bonds
- Public Sector Bonds
- Tax-Free Bonds
What are Corporate Bonds?
Corporate Bonds are the bonds issued by corporations. They offer higher yields compared to Government Bonds (G-sec bonds). Corporate bonds with "A-grade" ratings or above by credit rating agencies are considered safer instruments to invest in.
How To Invest In Corporate Bonds?
Investment in bonds is advantageous to customers in extensive ways. Due to the dependability of interest and principal returns, bonds have proved to be a stable investment option for customers averse to excessive risk in the market. The advantages thus include:
In India, one must have a Demat Account to be able to invest in bonds. You can talk to your broker or bank to get access to bonds and then invest in them. The process is mostly manual and involves considerable time.
Of course, if you want to have a completely seamless and hassle-free online investment experience with bonds, you can always rely on ScaleRich for investing in bonds. ScaleRich is known for its vast collection of good quality bond papers, transparent process, and easy online experience. With us by your side, you can invest in bonds with 3 simple steps:
Salient Features of Corporate Bonds
- Bonds are known for fixed returns. They are short, medium, and long-term investment tools that entail assured returns, with a low-risk proposition.
- Bonds offer a legal guarantee wherein the borrower is bound to return the principal amount to the creditors. Moreover, in the event of bankruptcy of the borrower, bondholders precede shareholders in receiving debt repayment.
- While bonds are low-risk, they also offer lower returns as compared to other risky investment alternatives such as equity mutual funds and direct equity.
