How to Invest in Corporate Bonds in India
Putting money into corporate bonds has turned into a smart move for Indian investors looking to diversify their portfolio and earn stable returns. Thanks to modern platforms like Aspero’s bond investing portal, the process is now more accessible, transparent, and user-friendly.
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, receive periodic interest payments until the bond matures. These differ from government bonds and often provide better yields due to the added credit risk present.
Benefits of Investing in Corporate Bonds
1. Better Interest: Many premium-yield corporate bonds provide higher interest rates than bank deposits or public sector instruments.
2. Regular Income: Bonds provide fixed returns through interest, making them ideal for 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. Safety-Oriented: For conservative investors, highly rated bonds from NBFCs and other industries can be a safer haven.
Steps to Invest in Corporate Bonds
1. Choose a Reliable Portal
Begin with 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 secure and seamless. Complete your Know Your Customer (KYC) requirements 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 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 affected by market rate changes, which can impact resale value.
3. Liquidity: Check if the bond is listed and actively traded for better resale potential.
4. Tax Planning: Interest income is taxable. What are Bonds & How to Invest in Bonds? Aspero’s blog offers guidance on tax implications.
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 approachable for both retail and HNI investors.
Whether you're interested in secured bonds, build a stable income stream, or broaden your portfolio, Aspero’s bond investment platform is your one-stop solution.