Before we learn about the ways to invest in Corporate Bonds Directly in India, let us understand bonds in brief. Earlier one of the most common ways to arrange funds for corporates was to borrow money from banks as a loan. The bank loans come at a higher rate of interest. But when the same fund is raised from the investors, the rate of interest payable to investors is low. But now bonds have become a better option for issuers. It is now primarily issued to raise the necessary funds from investors instead of banks.
Bonds are a guarantee issued by a borrower to a money lender. There are several types of bonds. Each has its pros and cons. Amidst the different bond types, corporate bonds are a popular bond type available in the Indian market. Corporate Bonds today have become one of the preferred and dependable investment option for institutional and retail investors in India. you can buy corporate bonds online or through various reliable sources.
Know How to Invest in Corporate Bonds Directly in India
Investors can invest in corporate bonds issued by the different companies in a few easy steps. Corporate bonds as the name suggest is issued by corporations first in the primary market and later it is traded in the Secondary market. You can buy corporate bonds in the primary market through a bank, brokerage firm, broker, or a bond trader. You can alternatively buy Corporate Bonds in India from the secondary market. A few of the corporate bonds are also traded over the counter.
There are various other sources through which you can invest in corporate bonds directly in India in no time. Today, many online bond platforms are available in the Indian market that help you trade in bonds securely. You just need to register yourself, complete your KYC online if trading for the first time, and explore the list of bonds available for the trade online.
The online platforms like BondsIndia.com are gaining popularity among the retail investors interested investing in corporate and other types of bonds. To trade in bonds, you need a demat account which you can open in a couple of minutes. There are many companies engaged in offering demat account services. You can choose the top demat service provider and get set to invest in corporate bonds preferred for its great features. Investors can visit an online bond platform to invest in Corporate Bonds directly in India at a comfortable time.
Process to buy bonds online
Login your account
Explore the bonds available for the trade
Select the bond you wish to buy
Choose the number of units you wish to buy
Select the payment mode and follow the next step
You will receive the confirmation for payment on successful completion of the transaction
Incase your payment fails due to any reason; you can reinitiate the payment
Also, you will receive bond ordera containing bond details
Prior to investing in corporate bonds do not forget to consider the few essentials. It will help you avoid disappointment and enjoy higher yield and periodic income. Investing in corporate bonds having good rating can help you minimize the risk of company declaring default or bankrupt.
You do not need to worry about anything. Investing in bonds have been made easy for the investors today.
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