How To Invest In Bonds On Grip Invest?

Bonds are a popular fixed-income investment option in India, offering stability and predictable returns, especially during times of market volatility. Compared to equity investments, bonds in India are considered relatively safer and are ideal for risk-averse investors looking to diversify their portfolios.

But with multiple options and platforms available, how do you invest in bonds in India efficiently and securely? This is where Grip Invest comes in. In this blog, we’ll walk you through a step-by-step guide on how to invest in bonds online via Grip Invest, and why alternative investments like corporate bonds are gaining popularity among modern Indian investors.

What Are Bonds And Why Should You Invest In Them?

Bonds are debt instruments issued by companies or the government when they need to raise capital. In return for your investment, the issuer commits to repaying the principal along with periodic interest—making bonds a reliable source of fixed income.

But why should you consider bonds in India as part of your investment strategy?

Bond investments offer stability and predictability, delivering regular interest payments that create a steady cash flow—even during volatile market conditions. They are also designed for capital preservation, as your principal is returned upon maturity. This makes bonds a smart choice for building a well-balanced portfolio.

Compared to equities, bonds generally carry lower risk and volatility, acting as shock absorbers during market downturns. That’s why they’re often regarded among the best low-risk investment options in India.

Thanks to digital platforms like Grip Invest, investing in bonds in India has become easier than ever. What was once seen as a traditional, rigid asset class is now a flexible and accessible tool, ideal for both new and seasoned investors.

Read: Investing In Corporate Bond Without Liquidity Hurdles

Why Choose Grip Invest For Bond Investments?

With numerous investment platforms available in the market, what distinguishes Grip Invest as a preferred choice for bond investments? Let’s explore. 

I. Key Features Of The Platform

1. Diverse Bond Ratings, Diverse Opportunities

Grip Invest offers corporate bonds in India across the credit rating spectrum—from AAA (indicating exceptional creditworthiness) to BBB (suggesting moderate credit risk).

This diversity provides significant advantages. For capital preservation-focused investors, AAA-rated bonds offer maximum security. For those seeking enhanced yields with calculated risk exposure, BBB-rated instruments present attractive alternatives. 

Grip Invest differentiates itself by offering comprehensive selections across the risk-return spectrum rather than limiting options to only premium bonds.

2. Filter And Compare - Precision Selection Methodology

The initial experience of going through numerous bond investment options can be challenging. Grip Invest addresses this through advanced filtering capabilities. Investors can sort available bonds by credit ratings, yield rates, maturity durations, and issuing entities. 

The platform facilitates direct comparisons of multiple instruments, eliminating the need for external analysis tools. This transforms bond selection from a potentially overwhelming process into a structured, systematic decision.

3. After Market Order - Continuous Investment Capability

Traditional investment platforms would require waiting until the next business day to complete a trade. Grip Invest's After Market Order functionality eliminates this limitation by enabling transaction placement 24 hours a day, throughout the week. 

This feature acknowledges that investment decisions often occur outside standard market hours and provides the infrastructure to act upon them promptly.

4. Sell Bonds Anytime - Enhanced Liquidity Framework

The conventional approach to bond investing historically imposed significant liquidity constraints as they had to stay invested till maturity, with limited options for premature exits.

Grip Invest has transformed this aspect through its innovative liquidity mechanism. Following a modest holding period of two months, investors can liquidate bond positions through the platform's marketplace. Multiple buyers participate in price discovery, ensuring fair valuations rather than disadvantageous discounts. 

Settlements conclude within one business day, representing efficiency compared to traditional secondary market transactions.

This enhanced liquidity framework effectively recategorised bonds from relatively illiquid, long-term commitments to financial instruments capable of adapting to evolving investor requirements.

II. Trusted Partners And Comprehensive Due Diligence

Investor confidence requires robust regulatory compliance and operational transparency. Grip Invest's formal regulatory status addresses these requirements. The platform operates with an Online Bond Platform Provider (OBPP) license and functions within the Securities and Exchange Board of India (SEBI) regulatory framework. 

This status imposes strict operational standards, transparent disclosure requirements, and substantive investor protection measures. Each bond undergoes extensive due diligence procedures before presentation to investors, including issuer creditworthiness assessment and financial statement analysis.

Types Of Bonds Available On Grip Invest

Grip Invest offers a carefully curated selection of bonds across various credit ratings from leading NBFCs and corporate issuers. 

For investors seeking high safety, AAA and AA-rated bonds from established NBFCs like Navi Finserv, Vivriti, UGRO Capital, Nido Homes (backed by Edelweiss), and many more, that provide steady returns with minimal risk.

The platform also features A+ and A-rated bonds from growth-oriented NBFCs, including EarlySalary and Dishman that appeal to investors with moderate risk appetite seeking inflation-beating returns.

For those pursuing higher yields, BBB+ and BBB-rated bonds from emerging financial institutions like Moneyboxx and Indel are also available. Despite their higher risk profile, these bonds undergo Grip's rigorous due diligence process to ensure fundamental soundness.

Each bond listing includes comprehensive information about the issuer's financial health, credit history, and payment structure, empowering investors to make informed decisions aligned with their risk tolerance and income objectives.

Step-By-Step: How To Start Investing In Bonds via Grip

Here is how to invest in corporate bonds in India through Grip Invest.

1. Account Setup & KYC Verification

First things first - you need an account. The registration process typically requires approximately 3-5 minutes to complete. Subsequently, Know Your Customer (KYC) verification becomes necessary. This can be done in four easy steps mentioned below:

Step 1: Provide Identity Information

For identity, you need to provide PAN, KRA, Selfie and Signature.

Step 2: Provide Financial Information

Under financial information, you need to provide details of the Bank Account and the Demat Account.

Step 3: Provide Other Information

Under other information, you need to add details regarding your gender, occupation, marital status, etc.

Step 4: Provide Nominee Information

Finally, add the details of the nominee and finish the e-sign. 

The process of KYC on Grip is easy and smooth, and can be completed within 2 minutes.

2. Browsing And Selecting Bonds

Upon successful verification, you gain access to the live bonds available on Grip. The platform offers the facility to filter and compare the deals as per the expected tenure and returns. The investors can use the SWAP deals option in the ‘Filter and Compare’ facility to choose the right deal according to their risk appetite and financial goals. Additionally, users can go to the ‘Invest’ section on the website/app and explore all the deals. You can choose the corporate bond based on multiple parameters:

• Credit ratings (AAA to BBB)
• Yield to maturity (percentage returns)
• Maturity durations
• Issuers
• Minimum investment thresholds
• Security Cover

Selecting any listed bond provides access to comprehensive information, including:

• Issuer background and financial performance metrics
• Credit rating rationale and historical rating movements
• Risk assessment matrices
• Cash flow projections
• Interest payment schedules
• Detailed term sheets

This transparency enables informed decision-making based on substantive factors rather than limited surface-level information.

3. Making Your First Investment

The transaction process follows a structured pathway upon identifying an appropriate bond investment. Select "Invest Now," specify the investment amount (subject to minimum thresholds, typically starting from INR 1000), and confirm your investment intent.

The platform supports multiple payment mechanisms, including Unified Payments Interface (UPI), Internet banking, National Electronic Funds Transfer (NEFT), and Real-Time Gross Settlement (RTGS).

Following successful payment processing, investors receive digital bond certificates via registered email addresses. Additionally, the investment appears in the personalised Grip dashboard for ongoing monitoring and management.

The bonds that you purchase on Grip will also reflect in your demat account. This makes managing your portfolio easy.

4. Download The Application For Comprehensive Investment Management

While the web-based platform provides complete functionality, the dedicated Grip Invest mobile application offers enhanced convenience. 

• Real-time portfolio performance monitoring
• Automated notifications for interest payments and credit events
• Transaction capabilities for new investments
• Liquidity access through the "Sell Bonds Anytime" feature
• Document repository for investment certificates and tax documentation

The application's intuitive interface simplifies bond investment management to a degree previously unavailable in traditional fixed-income markets.

What Returns Can You Expect?

Here is what you need to consider for your Grip invest bond return. 

Understanding Coupon Rates And Maturity Considerations

Bonds available on Grip Invest typically offer coupon rates ranging from 9% to 14% annually. These corporate bond interest rates vary based on maturity duration, credit rating and other crucial factors.

Maturity periods on the platform generally range from 4 months to 7 years. Longer-dated bonds typically provide higher yields to compensate investors for the extended capital commitment and increased duration risk. This relationship between maturity and yield creates opportunities for investors to align investments with specific time horizons and income requirements.

Taxation On Bond Returns

The tax implications of bond investments warrant careful consideration. Interest income generated from corporate bonds is subject to taxation according to the investor's applicable income tax bracket.

Capital gains realised through secondary market transactions before maturity receive differential tax treatment based on holding period:

• Short-term capital gains (holding period less than 12 months): Taxed at the investor's income tax slab rate
• Long-term capital gains (holding period exceeding 12 months): Taxed at 10% without indexation benefits

Certain specialised bonds available on Grip Invest may offer preferential tax treatment, such as tax-exempt status for specified infrastructure bonds or reduced withholding tax rates.

Read: Navigating Financial Priorities Amid India's Middle Income Trap

Conclusion

Bond investing through Grip Invest combines the security of fixed-income instruments with modern conveniences like 24/7 investing and flexible exit options. Whether you're looking to diversify your portfolio, generate regular income, or simply find a safer alternative to volatile equity markets, Grip's bond platform offers a user-friendly solution.

With transparent information, diverse options, and regulatory compliance, Grip Invest has transformed bond investing from a complex, rigid process into an accessible opportunity for everyday investors.

FAQs On Investing In Bonds

1. What is the minimum investment amount for bonds on Grip?

The minimum investment typically starts at INR 1000, though some premium bonds may require higher minimums, depending on issuer specifications and bond characteristics.

2. Can I sell bonds before maturity?

Yes, following a mandatory two-month holding period, investors may place sell orders through Grip's proprietary "Sell Bonds Anytime" marketplace, with transaction settlement completed within one business day of execution.

4. Are the returns from bonds fixed or variable?

The majority of bonds available on Grip Invest feature fixed coupon rates, delivering predictable income streams throughout the investment tenure. Some bonds may have floating rates tied to benchmark indices such as the Repo Rate or Treasury Bill yields, with periodic rate reset provisions.

5. How is interest from bonds taxed?

Interest income derived from corporate bonds is subject to taxation at the investor's applicable income tax slab rate. Capital gains realised through secondary market transactions are taxed according to holding period classification: short-term gains (holding period <12 months) at income tax slab rates, or long-term gains (holding period >12 months) at 10% without indexation benefits.

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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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