Now Buy And Sell Bonds Anytime With Grip Invest
Investors today are not just looking for good returns. They also want the freedom to make changes when needed. Traditional bonds make this difficult because they lock your money for years and are hard to sell. Grip’s new feature changes that.
This blog outlines how this feature works and why it’s useful for people who want more flexibility with their investments.
The Exit Barrier In Bond Investing
For most individuals, investing in bonds is tying up money for several years. Whether it's government or corporate debt, flexibility is rarely part of the equation. Once invested, it can be difficult to sell bonds unless specific, often restrictive, conditions are met.
This is majorly because the retail participation in bond markets is only 4% as of 2024, that is why there is a problem in corporate bond liquidity1. This limited involvement creates a liquidity gap. As a result, selling early can involve steep losses or prolonged waiting periods, discouraging timely exits and complicating portfolio management.
Life rarely follows a fixed schedule. Emergencies arise, new opportunities emerge, and financial priorities shift. Instruments that cannot adapt to evolving priorities introduce friction into the decision-making process, reducing efficiency and resilience. That’s where Grip's ‘Sell Anytime’ facility which helps you to sell various types of bonds comes into the picture.
Introducing ‘Sell Anytime’: Bond Liquidity, Reimagined By Grip
Through Grip's Sell Anytime feature you can sell bonds online after just 2 months. This means you don’t have to wait until the bond matures to access your invested money.
As noted earlier, with traditional bonds, your money is usually tied up for a long time, which can limit your financial flexibility. But with Sell Anytime, your investments are flexible. Whether you need to reallocate your funds, handle an emergency, or adjust your investment strategy, you can do so without depending on banks or brokers and without having to accept bad terms.
This feature brings more flexibility to bond investing. Now, you can enjoy steady returns without sacrificing the ability to access your money when you need it.
How It Works – Simple, Seamless, Smart
Grip’s ‘Sell Anytime’ feature is designed to make bond investing more flexible and user-friendly. Here’s a quick look at how the process works from holding to selling your bond:
- Short Lock-in: After buying a bond on Grip, you only need to hold it for a minimum of 2 months.
- Marketplace Listing: Once the lock-in period ends, you can list your bond for sale directly on Grip’s online platform.
- Price Discovery: Your bond is visible to multiple real investors. This helps ensure a fair market price based on current demand and interest rates.
- Fast Settlement: As soon as a buyer purchases your bond, the transaction is completed online, and you receive your money quickly, ready to reinvest or withdraw.
Step-by-Step Guide On How To Sell Bonds On Grip
Wondering how to sell bonds before maturity? Grip makes it easy. With just a few simple steps, you can sell your bond quickly and efficiently. Here’s how to do it:
1. Access Your Holdings: Log in to the Grip app or website and navigate to the “My Holdings” section.
2. Request a Sell Quote: Choose the bond you want to sell and click on “Place Sell Request” to view the buyer’s offer.
3. Execute the Sell Order: On the following business day (T+1), submit a sell order through your demat account between 9:30 AM and 2:00 PM.
4. Follow the Provided Instructions: Check your registered email for step-by-step guidance specific to your transaction.
5. Submit Confirmation: Send a screenshot or the order confirmation details to Grip as proof of execution.
6. Receive Final Confirmation: After settlement, Grip will email you a confirmation once the process is complete.
Real-Life Use Cases: Why Flexibility Matters
You may not understand the importance of a normal plain situation, but let us try to understand some circumstances when you will be in need of funds where the Grips feature will help you out.
1. Emergency Needs: Sometimes, you may need the money in an emergency,example, for a hospital bill or some other unexpected family requirement. In either situation, you can sell your bond.
2. Market Dip: Suppose you're an equity investor and there has been a market dip. To capitalise on this, you can sell your bond investment and invest the proceeds in equities.
3. Better Yield: Bond yields continue to fluctuate based on market conditions. If there's a better bond that offers a better yield elsewhere, you can switch your investment by selling your existing bond.
4. Playing Cash Parker: If you're the type who waits and parks money temporarily until the right investment arrives, Grip's 'Sell Anytime' function provides the mobility that you desire.
Conclusion
Grip’s “Sell Anytime” feature addresses the most persistent challenge in bond investing—limited liquidity. Liquidity is no longer a limitation but a built-in option. This solution is well-suited to today’s investor, someone who seeks predictable returns but refuses to be boxed in by rigid timelines. Explore a curated selection of high-yield, flexible bonds on Grip and start investing with freedom.
FAQs On Sell Bonds Anytime
1. Can I sell my bond before maturity?
Yes, the Grips Sell Anytime feature allows you to sell your bond before maturity, and you will get your investment amount very flexibly. However, for a short period of 2 months, you have to wait from the time of buying.
2. Are all bonds listed on Grip eligible for the “Sell Anytime” feature?
Yes, all the bonds that you buy from Grips website are available with the feature of Sell Anytime. The selling price of a bond will depend upon that particular market condition and the trends in the bond market when the investor is willing to sell.
3. Can I reinvest the money after selling a bond on Grip?
Yes, you can reinvest your money after selling in Grip investment. With a variety of bonds available, you can even reinvest in the same bond or other various bonds are also open for you.
References:
1. Money Control, accessed from: https://www.moneycontrol.com/technology/after-the-equity-rush-by-retail-investors-fintechs-see-bonds-taking-off-article-12724439.html
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Disclaimer - Investments in debt securities/municipal debt securities/securitised debt instruments are subject to risks including delay and/ or default in payment. Read all the offer related documents carefully. The investor is requested to take into consideration all the risk factors before the commencement of trading.
This communication is prepared by Grip Broking Private Limited (bearing SEBI Registration No. INZ000312836 and NSE ID 90319) and/or its affiliate/ group company(ies) (together referred to as “Grip”) and the contents of this disclaimer are applicable to this document and any and all written or oral communication(s) made by Grip or its directors, employees, associates, representatives and agents. This communication does not constitute advice relating to investing or otherwise dealing in securities and is not an offer or solicitation for the purchase or sale of any securities. Grip does not guarantee or assure any return on investments and accepts no liability for consequences of any actions taken based on the information provided. For more details, please visit www.gripinvest.in
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