Corporate Bonds
Corporate bonds are debt securities issued by companies, NBFCs, or corporations referred as issuers. Corporate bonds offer fixed returns within a fixed tenure called yield to maturity (YTM).
Investors provide funds to the issuer, who offers fixed returns through periodic interest and principal payments, made monthly, quarterly, or semi-annually.
Independent agencies like CRISIL, ICRA, and CARE assess the issuer's financial health and assign credit ratings between AAA (highest) to D (lowest). A higher rating indicates a lower risk.
Corporate bonds offer liquidity through the secondary market, allowing investors to sell bonds before maturity.
Plan your investment
Estimate your corporate bond returns in seconds
Use this bond calculator to calculate how much your investment in corporate bonds will grow. Adjust the amount, tenure and yield to view your maturity value instantly — no sign-up needed.
- Put your investment amount
- Adjust tenure, expected YTM & coupon frequency
- See instant maturity value
Disclaimer: Please note that these calculators are for illustration only and do not represent actual returns.
REASON AND BENEFITS
Consistent Income
Bonds in India provide steady and fixed returns through fixed interest payments, making them a favourable choice for investors looking for a predictable income stream.
Accessible Investment
You can begin investing in corporate bonds with a minimum of just 1,000, offering a range of options to align with your financial goals and preferences.
Portfolio Diversification
Invest in bonds that are backed by credit ratings, offering a safer investment option that remains insulated from stock market volatility.
Liquidity & Flexibility
Investors can sell their bonds on Grip anytime, leveraging the liquidity of the secondary corporate bond market to exit investments early with ease.
How to Invest?
- Look for Ratings: Independent agencies like CRISIL, ICRA, and CARE rate bonds based on the issuer’s financial health. Understand the Rating Scale: Ratings range from high (AAA) to low (D). Higher ratings mean lower risk but often lower returns, while lower-rated bonds carry higher risk and potential for higher returns.
- Secured vs Unsecured Bonds: Secured bonds are backed by assets (collateral) which means, in case of a default, these assets can be used to repay investors. Unsecured bonds don’t have collateral and can be riskier. Check Collateral Value: For secured bonds, it’s good if the collateral value is higher than the loan amount, as it helps protect your investment.
- Short-Term vs. Long-Term Bonds: Bonds can range from short (12 months) to long-term (24+ months). Short-term bonds generally have lower yields and risk, while long-term bonds can offer higher returns but come with more uncertainty.
- Check the YTM: This is the total return you can expect if you hold the bond until it matures. It factors in both the coupon payments and any gain or loss if the bond was bought at a discount or premium.
OTHER OFFERINGS
Other Secured Fixed-Income Products By Grip Invest
InvoiceX
- Loans backed by Invoice Discounting
- Up to 14% pre-tax YTM
- Start investing with Rs 1,00,000
- SEBI/RBI complaint and credit rated
LoanX
- Diverse pool of loans from top NBFCs
- Up to 14% pre-tax
- Start investing with Rs 1,00,000
- SEBI/RBI complaint and credit rated
Baskets
- Theme based investing
- Up to 14% pre-tax YTM
- Start investing with Rs 5,000
- SEBI/RBI complaint and credit rated
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Market Insights
Latest Update on Corporate Bonds
SEBI planning to introduce 'derivatives' to deepen India's corporate bond market
SEBI and RBI are jointly working to launch derivatives on India's corporate bond indices. This step is expected to improve liquidity and make India's corporate bond market more attractive to domestic and foreign investors. The regulators are already developing a market-making framework to support corporate bond trading, with the draft guidelines for corporate bond index derivatives already released in February. After being finalised, stock exchanges are expected to soon launch these products.
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To help you
Frequently Asked Questions
Can non-residents invest in corporate bonds on your platform?
How do I find corporate bonds to buy?
What happens if the issuing company of corporate bonds defaults?
