About Corporate Bonds

Corporate bonds are debt instruments issued by companies to raise funds. When you invest, you're lending money to the company in exchange for fixed, scheduled interest payments — and your principal back at maturity.

You invest a fixed amount, earn periodic interest (coupon), and receive your principal back at maturity — or in staggered installments, depending on the bond structure. Always review the return schedule and cash flows timeline before investing.

Bonds = a loan to a company. Stocks = ownership in a company. Bondholders earn fixed, predictable returns. Stock returns fluctuate with company performance and market conditions. Bonds are generally more stable with limited upside compared to equity stocks.

Bonds generate returns through regular interest (coupon) payments, and potential capital gains if sold before maturity.

Coupon payments are fixed. However, if you sell before maturity, your actual return can vary depending on the market price at the time of sale.

The coupon rate is the fixed annual interest rate a bond pays on its face value. For example, an INR 1,000 bond with a 9% coupon pays INR 90 per year.

YTM (Yield to Maturity) is the total return you'd earn if you hold the bond until it matures — factoring in interest payments and capital repayment. It factors in the time value of money and is generally considered to be one of the most complete measures of a fixed return opportunity, including a bond's return.

Credit ratings (like AAA, AA, A) assess how likely an issuer is to repay its debt. Higher ratings mean lower risk. Always check a bond's rating before investing.

Higher-rated bonds (AAA/AA) carry lower risk and typically offer lower returns. Lower-rated bonds offer higher returns but come with greater risk of default. Match the rating to your risk appetite.

Key risks include: credit risk (issuer default), interest rate risk (price changes when rates move), and liquidity risk (difficulty in selling before maturity).

Bond prices are influenced by market interest rates, the issuer's credit rating, time remaining to maturity, and overall market liquidity.

Bond prices and interest rates move in opposite directions. When rates rise, existing bonds with lower returns become less attractive, leading to a price fall. When rates drop, older bonds with higher returns become more valuable, resulting in prices rising. Example: You hold a bond paying 8% interest. If new bonds offer 10%, buyers prefer those & your bond's price drops. If new bonds offer only 6%, your 8% bond becomes more attractive, resulting in a price rise for that bond.

Investing in bonds on Grip is simple:

• Login and complete KYC 
• Explore bond opportunities on the platform.
• Invest in the bonds you wish to invest in via paying directly to NSE
• Track & earn fixed returns directly in your demat account

Bond investments on Grip start from INR 100. Some bonds are issued at face values of INR 10,000 or INR 1,00,000 — check the individual listing for details.

"Sell Bonds Anytime" means you can exit your bond investment before maturity (after 2 months of holding) through Grip's platform. This gives you flexibility and liquidity — you're not locked in till maturity.

Yes. You can place a sell order before maturity via Grip's "Sell Anytime" feature. Sale is subject to market liquidity and buyer availability — it is not guaranteed.

Selling before maturity may result in a capital gain or loss. Short-term capital gains (held <=12 months) are taxed at your income slab rate. Long-term capital gains (held >12 months) are taxed at 12.5% flat, without indexation. Losses can be set off against other capital gains.

Bond returns are taxed in two parts: 1. Interest income — added to your total income and taxed at your slab rate (like salary). 2. Capital gains on sale — held <=1 year: taxed at slab rate. Held >1 year: taxed at 12.5%.

If your total annual income is below INR 4 lakhs, you may be eligible for TDS exemption. Under the new Income Tax framework (from April 2026), Form 15G/15H has been replaced by Form 121 — a single consolidated declaration form under Section 393(6) of the Income Tax Act, 2025. Contact support@gripinvest.in for more details.