Short-Term Bonds
Short-term bonds are fixed-income debt securities with maturities ranging from 91 days for Treasury Bills to around 1-3 years for many corporate bonds in India.
The short duration of these bonds increases liquidity and reduces interest rate risk, creating an opportunity for more stable returns than long-term bonds.
Short-term government bonds like Treasury Bills and Government Securities carry a sovereign guarantee, while short-term corporate bonds offer a higher return than them, depending on issuer quality and credit risk.
Compared with long-term bonds, short-term bonds are generally less sensitive to interest rate changes, which can make them easier to manage in a changing rate environment.
Investors can earn regular coupon payments while holding the bond or liquidate their investments on Grip Invest by selling anytime after a holding period of 2 months.
Plan your short term investment
Estimate returns from short term investment in bonds
This bond calculator is designed to help you estimate your returns from a bond investment. For short-term bonds, set the tenure in months in the calculator and enter other required inputs to check the potential returns instantly.
- Enter the investment amount
- Add 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
Predictable Income
Investors can earn a fixed periodic income based on applicable coupon rates throughout the holding period, resulting in steady income.
Greater Liquidity
Investors can get access to capital when needed by selling their bonds on Grip Invest at the prevailing market price before maturity.
Lower Interest Rate Risk
Due to their short maturity, the market price of these bonds is less sensitive to interest rate changes.
Higher Yield Potential
Short-term bonds can offer greater returns than traditional short-term investments, like fixed deposits.
Better Cash Management
Short-term bonds can be useful for parking surplus funds for a short period without keeping money idle in a savings account.
Suitable For Short Goals
They may fit investors planning for near-term expenses, emergency reserves, or temporary capital deployment.
How to Invest?
- Short Maturity Period: Short-term bonds in India usually have shorter tenures, commonly around 1-3 years for corporate bonds, while Treasury Bills mature in 91, 182, or 364 days.
- Fixed Coupon Rate: Many short-term bonds offer a fixed coupon, so investors can estimate expected income more easily.
- Interest Rate Sensitivity: Shorter maturity of short-term or ultra short-term bonds reduces the impact of interest rate changes on their price.
- Variety Of Issuers: Government bodies, PSUs, and corporates may issue short-term bonds, giving investors multiple risk-return options.
- Market-Linked Pricing: If a bond is sold before maturity, its price can move based on interest rates and market demand.
OTHER OFFERINGS
Other Secured Fixed-Income Products By Grip Invest
Corporate Bonds
- Securities issued by corporates & NBFCs
- Up to 14% pre-tax YTM
- Start investing with Rs 1,000
- Exchange listed and credit rated
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
Corporate FDs
- High Yield Fixed Deposit Investments
- Up to 10% pre-tax
- Start investing with Rs 1,000
- SEBI/RBI compliant and credit rated
For your knowledge
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To help you
Frequently Asked Questions
Which is safer: short-term or long-term bonds?
Are long-term bonds riskier than short-term bonds?
What is the tax on short-term bonds?
Can I mix both short-term and long-term bonds in my portfolio?
