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4 Basic Differences Between Investment Options in India

Although, most of these people, seem to believe, they do understand, when, you hear, people, holding income – oriented, investments, questioning growth, and/ or, vice versa, one realizes, it may be helpful, to introduce, some sort of basic – primer, to enhance, knowledge and understanding, in these types of matters. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, some of these basic differences, and hopefully, help people, make wiser choices, for their specific circumstances, etc.

1. Stocks: There are a variety of different types of stock, which usually, fall – into, 2 overall, basic classifications/ categories, either, preferred, or common! One of the key differences is, common stock ownership, grants someone, more participation, in terms of voting, and/ or, decision – making, it, also, carries more risk! Generally, preferred types, have less fluctuation, and grant/ distribute, higher dividends, etc. In addition, some companies, are considered, large – caps, versus, others, which are, small, or medium caps! This has to do, with the total amount of capitalization, and/ or, value, these stocks, maintain, etc. One should also consider, the sector, of a particular corporation, or basic industry. Times change, and, some industries, perform better, than others, after these changes! Some of these investments, are considered, safer, while others, more speculative! Perhaps, the key to understand, is, a stock represents ownership, and shares, either risk, or greater success!

2. Bonds: Unlike owning a stock, bonds represent, debt obligations, of, either, a corporation, and/ or, government entity (municipal/ local; Federal). It is often, defined, as representing, a debt obligation, backed by, either, the full faith, etc. of the backing – entity, and/ or, by a specific revenue flow! Obviously, the former type, are, usually, safer and more secure, while the latter, may pay, a greater dividend rate! Municipal bonds, from the state, you reside, offer tax – free status, both, on the Federal and State levels, while, when, they are. from other areas, only, Federal taxes, are saved. It is also, important, to recognize, that, U.S. Treasury Bonds, Bills, sovereign gold bonds and Notes, although, considered, the safest investment, offer, lower rates, and only are tax – free, in terms of local taxes.

3. Bank interest, versus, corporate dividends: Banks pay interest, while corporations pay dividends! Remember, however, while the F.D.I.C. backs most savings deposits, corporate dividends, are not guaranteed, in most cases! That is a primary reason, corporations generally pay a higher rate of return. Also, recognize, all corporations, are not, the same, and, since, any bond, is backed by the specific company, degree – of – risk, may vary, significantly!

4. Real estate: Investment real estate, when used, in a knowledgeable manner, may offer, the type of overall return, including, tax considerations/ advantages, rent – income, and growth, of, asset value! However, the benefits of this area, often, depend on a variety of factors, while, understanding, it usually, does not offer, the degree of liquidity, other forms, may offer.

Read more – Government Bonds for Senior Citizens

It is important to have the basic knowledge, to permit you, to enhance your chances, of making the most – personally – satisfying, wisest investment decisions, based on a degree of understanding, and hiring the finest professionals, for your circumstances, and needs! The more you know, the better!

What to consider before investing directly in government securities or Bonds?

Bonds are a great alternative to consider if you’re searching for a stable income and a low-risk investment in India. Let us understand the different types of bonds & how to invest in them to gain a better understanding.

What are government securities or Bonds?

Government securities are debt securities issued by the Government of India. They are considered the safest kind of investment since the government has the ability to acquire funds through taxes and other ways if it suffers repayment difficulties. Government Bonds, SGBs (Sovereign Gold Bonds), Treasury bills & much more have been made available to retail investors to invest in.

What are the Best kinds of Bonds to buy in India?

The following kinds of Securities/ Bonds can be considered by the investor for the purpose of investing –

1. Government Securities – Government security bonds are bonds issued by the federal and state governments. These have no credit risk because they are issued by governments. In India, these are one of the safest forms of investment options for earning periodic income and principal at maturity. Semi-annual interest is paid on these bonds.

2. Sovereign Gold Bonds – India’s government also sells sovereign gold bonds. Gold bonds are similar to Government of India shares in that they are a kind of security. It also has a fixed interest rate that is paid on a regular basis and there is no risk of handling like there is with gold bullion.

3. Fixed Rate Bonds – Fixed rate bonds have fixed interest rates that remain constant during the investment term, regardless of market rate variations.

4. Inflation-Indexed Bonds – The original capital and accrued interest on this form of bond are indexed to inflation. The Consumer Price Index (CPI) or the Wholesale Price Index (WPI) are used to index these bonds, which are sold to retail investors.

5. Zero-Coupon Bonds – It earns zero interest, or no interest, as the name implies. The gap between the issuing price at a discount and the redemption value at par generates income from Zero-coupon bonds. Rather of issuing bonds through an auction, these bonds are generated from existing securities.

What must an investor consider before investing in Government securities or Bonds?

Government Security yields fluctuate due to a variety of reasons, so buyers must monitor both domestic and global trends. Fixed-income buyers, according to the industry, dive and fly with both the movement of bond yields. In a rising interest rate environment, buyers lose money, whereas, in a falling rate situation, they win money. When gilts are held to maturity, this risk is minimized.

Other factors that influence inflation and interest rates include economic growth, sovereign ranking, and supply of money, government debt, global stability, and geopolitical risks. As a result, investors must keep a close eye on everything.

How can an investor buy Government Securities in 2022?

Under the non-competitive bidding system, exchanges have specific divisions for dealing with government bonds, such as BSE direct and NSE goBID. Also, Retail investors can invest directly in government bonds through the RBI’s retail direct scheme by opening a Retail Direct Gilt (RDG) account. Additionally, investors can invest in government bonds using online stock brokerage platforms or online trading platforms that specialize in fixed-income products.

Conclusion

Government Securities are appealing investments with a variety of tenure choices. Government bonds are a wonderful asset for asset allocation because of the flawless investment avenues available online and the rapid settlement mechanism involved in their trading.

Which gives the higher yield- corporate bond or treasury bonds

Public and private companies and government bodies issue bonds to the general public to raise capital. This capital is used by companies for further business activities and in infrastructure and development projects by government bodies. Bonds offer fixed returns, steady payouts, and are a secure long-term investment option for people. Here, we will focus on corporate bonds and treasury bonds specifically.

What are Corporate Bonds

Corporate bonds in India are debt instruments issued by companies to generate funds for various business activities like adding a product line, investing in other projects, expansion, etc.

Interest on corporate bonds is higher for bondholders, which ranged between 7% to 12% in the year 2021, depending on the bond’s rating. Corporate bonds with higher ratings (AAA-rated) offer lower coupon or interest rates as they are less riskier than bonds with a lower credit rating (A-rated).

What are Treasury Bonds

When bonds are issued by the central government or the state government, they are called Government bonds. Treasury bonds meaning Government bonds. Government bonds may be issued for the short-term or long-term. Bonds that the government issues with a maturity period of less than one year are called Treasury bills while bonds with a maturity period of a year or even more are called bonds.

Treasury bills: Treasury bills are money market instruments released by the government, and currently, they are available for three tenors- 91 days, 182 days, and 364 days. The treasury bond rate is zero since these are zero-coupon bonds, meaning there is no interest offered on treasury bills. The treasure bonds yield comes from the discount at which they are available. You can buy treasury bills at a discount and then get them redeemed at their face value when they complete their tenure.
Government bonds: Government bonds, also known as Government securities or G-Secs, are long-term debt instruments issued by the government at a fixed or floating rate of interest. The maturity period of these bonds is usually between 5 to 40 years and the interest on these is paid usually on a half-yearly basis. The returns on G-Secs are usually low. For example, the G-Sec issued by the government in January 2018 for a 10-year tenure gives a half-yearly interest at 7.17%.

The return on corporate bonds, especially with a lower rating, is higher than treasury bonds, primarily because treasury bonds have a much lower risk of default as they are backed by the government. While purchasing a bond, is it advisable to look at the overall safety and returns of the bond.

Are government securities any different from government bonds ?

Introduction

The fear of aggressive US Federal Reserve policy tightening is on the minds of many people in India. Meanwhile, concerns of domestic inflation going up due to the recent increase in petrol and diesel prices are also felt.

This has caused yields of 10-year benchmark G-sec to surge by five basis points, i.e., 6.8311% on 22^nd March 2022.

India’s government bond market is enormous, and its size is about $1 trillion.

Institutional investors dominate the g-sec market. However, after introducing the RBI retail direct scheme, retail participation has climbed.

Government securities and government bonds are two terms that often get confused by investors. They both refer to debt instruments issued by governments to finance their activities or projects.

Still, they have a few key differences that are important for an investor to understand.

What are government securities?

Government securities (G-secs) are debt instruments issued and backed by the governments to finance or raise money for various government expenditures. The RBI plays the role of issuing government securities along with the government. They are considered relatively safe investments as they are backed by the issuing government. Further, they also provide steady income and protect against market volatility.

Government securities include T-bills, government bonds and notes.

The downside to investing in a G-sec is the relatively lower return, as they carry minimal risk.

Want to purchase government bonds? check out this.

What are government bonds?

Government bonds are debt securities issued by a government or public authority and are backed by the full faith of the government.

The government essentially borrows money from investors to fund a significant project that is expected to pay back, via interest payments, over a while. Government bonds have varying maturities and interest rates.

G-sec bonds come in various forms, such as fixed-rate bonds, floating-rate bonds, sovereign gold bonds, inflation-indexed bonds, zero-coupon bonds, etc.

Are government securities any different from government bonds?

Though government securities and bonds seem similar, they have a few differences; let us check out these differences.

1. Broader Term

An essential difference between government securities and government bonds is that government security is a broader term. It includes T-bills, government bonds and notes.

Treasury bills (T-bills) are short-term money market instruments issued by the government of India to cover its obligations.

On the other hand, government bonds are a part of government securities and do not include T-bills and notes.

2. Maturity

Another difference between government securities and government bonds is maturity.

As government securities include T-bills, government bonds, and notes, they have varying maturities.

T-bills have a very short term maturity, i.e., less than one year, and are presently issued by RBI in three tenors, 91 days, 182 days, and 364 days.

Treasury notes are similar to bonds but have shorter maturity than bonds.

Conversely, government bonds have a longer maturity, i.e., more than one year.

3. Issuer

The last point of difference between the two is the issuer.

Within government securities, T-bills are only issued by the government of India (central government), and notes can be issued by central, state governments and municipal corporations.

In contrast, government bonds can be issued by both central and state governments and municipal corporations.

Conclusion

There are many investment options available to investors in today’s world, depending on their risk appetite. To choose an appropriate investment, one can first analyse one’s risk profile. This will help them choose an investment option that suits their needs.

Government securities are among the safest investment options in India, with a relatively lower risk profile. Investors have used government securities (G-sec) to generate regular income and capital appreciation.

How the bond price is determined in the open market?

Introduction

Indian bond yields were at 6.781% on 21^st March 2022, while the rupee weakened as crude oil prices rose. The rupee’s value is closely correlated to crude oil prices because India imports more than 80% of its oil.

India’s reliance on imported oil has become a major worry, as the cost of crude oil has gone up. It could hurt its trade and current account deficits.

Bond yields continue to surge amid tensions between Ukraine and Russia and after the Fed raised interest rates.

The bond’s price is quoted in terms of its yield. If yield changes, the bond price also changes.

Bond prices are an economic indicator for traders and economists, who use the market to predict the economy and other related market factors.

Factors affecting the bond price in the open market

There are different types of bond markets in India. It can be divided into primary and secondary bonds markets.

The prices of bonds, just like any other asset in a free-market economy (secondary bonds market), are determined by their demand and supply.

However, numerous factors affect the demand and supply of bonds and thus their prices. Some of them are:

1. Interest Rate Movements

Interest rate movements affect the prices of instruments such as fixed income. India’s bond market is also affected by it.

If interest rates tend to rise in an economy, the yield of bonds also increases, leading to a fall in the bond price. On the other hand, if the interest rates tend to decrease, the bond yield decreases and the bond price rises.

This happens because if bond yields are higher for a new bond issue, but investors are getting a lower yield on the bond they are holding, investors will sell their bond. Thus the existing bond’s prices will fall.

2. Term to Maturity

The term to maturity of a bond can affect its price. For instance, when bonds get closer to their maturity date, their price gets closer to their par value. This is because when a bond reaches its maturity, the bondholders will be repaid the total face value of the bond.

On the other hand, the more time for a bond to mature, the lower its prices. The rationale is that there is more interest rate risk and default risk with longer-term bonds.

3. Credit Rating

The bond issuer’s credit rating plays an essential role in deciding the interest rate offered on the bond and the bond’s price once it has been issued.

If the bond issuer’s credit rating is low, the issuer will have to provide a higher interest rate to compensate the investor and vice versa.

Further, if the bond issuer’s credit rating falls, once the bond has been issued and is trading on the secondary market, the bond’s prices will fall.

4. External Factors

External factors such as geopolitical tensions, political or economic instability, exchange rate fluctuations, natural calamities, etc., can also affect bond prices.

Investors may flock to bonds during challenging times to protect their money instead of equity. Thus the bond prices will rise.

Similarly, if the stock market is surging, bond prices tend to fall as investors choose to put their money in stocks instead.

Conclusion

Bond prices are one of the essential indicators of market health and can be a helpful tool for traders to find profitable trading opportunities.

The price of bonds varies daily and is determined by the interaction between buyers and sellers, with several factors affecting that interaction.

As an investor, it is crucial to determine the bond’s current price. With the bond price, investors can get a sense of how much they might earn if they invest in that particular bond. Knowing the price of a bond allows them to compare different bonds and find the best one for their needs.

What is The Process of Issuing G-Secs?

Investments come with a certain level of risk and indistinguishable nuances. Unlike a few decades ago, today, we have abundant options to invest our money. From fixed deposits to bonds to mutual funds, you have an ocean full of choices that’ll help you grow your money. As people age, they look for safer investment avenues like G-Sec bonds, gold, public provident fund (PPF), national pension schemes, etc. Here, we’ll talk about government security bonds, the issuing process, and a few other aspects.

What are G-Sec Bonds?

Sometimes, the government also needs money to meet its annual fiscal expenses. So, other than banks, they reach out to the public to raise funds by issuing G-Secs. These debt instruments are risk-free and are much better than fixed deposits. The interest rates can be a bit of push and pull or wavering, but if you keep your investment for a long tenure, you can take the edge off capital loss. As these instruments are government-backed, the chances of getting default are rare. G-Sec bonds or government bonds are more liquid in the secondary market than in the primary market. If you plan to make an investment in government bonds, below are a few benefits listed.

G-Sec bonds offer coupon interests and also guarantee a stable inflow of cash. Plus, the government is held accountable for principal repayment to the investor. It’s the sovereign’s obligation to do so.
They are highly liquid and can convert into swift cash upon selling them in the secondary market.
If you want to take a loan in the repo market, you can use government bonds investment as a cover.
The G-Sec bonds are available in various maturities, i.e., from 91 days to 40 years. So, if you want to invest for the long term and also expect safety, this is an excellent investment avenue to choose.

How to Invest in G-Sec Strips?

Also known as Separate Trading of Registered Interest and Principal of Securities, the G-sec strips investment is ideal for a low/medium risk-taking investor. You don’t require huge money to invest in G-Sec Strips. The principal and interest sections in G-Secs are traded separately in the secondary market. The coupon interest on the government security bonds is converted into individual zero-coupon bonds for trade. The principal is called the principal strips and coupons as coupon strips. You can invest in G-Sec Strips for as low as Rs. 1000.

Process of Issuing G-Secs

G-Sec bonds are also known as government security bonds. The Reserve Bank of India has opened the doors for retail investors to invest in these debt instruments directly via creating GILT accounts. The functioning here is pretty straightforward like every other avenue in the market. You can lend a loan to the government in return for a fixed return on a regular period. You can invest in G-Sec bonds by participating in the weekly auctions managed and administered by the RBI electronically through E-Kuber.

Some of the other participants in the auction are commercial banks, primary dealers, financial corporations, insurance firms, etc. Based on your eligibility criteria, you can partake in the auction bidding. All the G-Sec transactions on GILT accounts get resolved via Constituent Subsidiary General Ledger.

At times, the government buybacks the prevailing G-Sec bonds from the investors to enhance the liquidity in the market. Government security bonds can either be held physically or in electronic form. If you have a demat account, these bonds get stored in your account in digital format. You can sell these in the secondary market whenever you want. There are various online bond trading platforms to buy G-Secs or G-SEC strips.

Final Words

Money is the driving factor for a business or a project to get going. Like individuals, the government also requires money to cover the budget expenses. That’s how G-Secs were born, a debt instrument attached with a guarantee of safety and sound returns from the government. You can buy these government security bonds directly online on an RBI-established portal called RBI Retail Direct by opening a GILT account. The other way to invest in them is by participating in the bidding conducted by the government. The principal and interest on G-Sec bonds are traded as G-Sec Strips in the secondary market. The minimum investment in G-Sec Strips starts at Rs. 1000.

Where to Buy Corporate Bonds in India?

Introduction

Corporate bonds have become a popular investment choice because they offer relatively stable income streams, and they’re generally less risky than investing in stocks.

As per a report, in 2025, the corporate bond market might reach Rs. 65-70 lakh crore from Rs. 33 lakh crore in 2020.

Corporate bonds are debt instruments issued by corporations. Corporations can raise money for their ongoing operations, M&A, or to expand the business. Investors provide money to the corporations in exchange for interest payments and principal repayment at maturity.

Corporate bonds interest rates in India tend to be higher than other investment options, such as savings accounts, public provident funds, government bonds, fixed deposits etc, thus, giving the investors the potential to earn more returns. Let’s see how to invest in corporate bonds in India.

Where to Buy Corporate Bonds in India?

Individuals can invest in corporate bonds in India in the following ways:

1. Broker

Through a broker, individuals can invest in corporate bonds. They can ask their existing broker to place an order for them or open an account with another broker.

In this method, the individual is required to have complete knowledge of the corporate bond they are buying.

2. Online platforms

Bonds Trading Online platforms are an excellent way by which individuals can buy corporate bonds in India.

Nowadays, online platforms are gaining immense popularity because of their ease of use. They also provide research to investors to make an informed decision.

Investors can buy corporate bonds from BondsIndia, one of the best online platforms.

3. Mutual funds

Investors who do not have time and knowledge can invest in corporate bonds through mutual funds or exchange-traded funds (ETFs).

Corporate bond funds are mutual funds that invest in multiple corporate bonds. Bond funds offer investors the opportunity to spread their risk as the investment is made in numerous companies, thus reducing the overall risk of an investor’s portfolio.

There are many corporate bond funds available in the market. Investors are advised to select the bonds, from different types of bonds, which suit their risk profile and goals.

Who can invest in corporate bonds?

Corporate bonds can be a solid investment for those looking for stable, predictable returns and are comfortable taking on a moderate amount of risk.

Corporate bonds are also a good option for those who are looking for a more diversified investment portfolio to reduce risk and volatility.

Ultimately, the best answer to the question of who can invest in corporate bonds will vary from person to person. Some factors that might be important to consider include, the investor’s age, investment goals, and overall risk tolerance.

Conclusion

Investors have various options to select from when it comes to investing, one of them is corporate bonds.

However, when investing in corporate bonds, it is essential to examine the credit rating of the company. Bonds with a higher credit rating will offer a lower interest rate, while those with a lower credit rating will have a higher interest rate. It is also important to consider the tenure of the bond. Bonds with a shorter tenure will have a higher interest rate than those with a longer tenure.

It is also advised that investors do their research before making an investment decision.

Why to Buy Bonds From BondsIndia?

There are plenty of ways a company can raise funds from the public, one of which is by issuing bonds. This financial instrument helps companies get the necessary financial aid to expand the business, add a new category in the product line, or move the operations smoothly without any interruption. As the bond market is advancing in India at a rocket speed, there are numerous bond platforms that facilitate people to park their funds without a hitch. BondsIndia, one of the leading fixed-income investment in India, deals with financial securities like bonds, G-Sec strips, 54EC bonds, and a few others in the same market line. Now that bond platforms are online, digital transactions happen in microseconds, ensuring safety and security to the investors. Well, the questions that every investor asks, in general, are “why should I invest in bonds online or buy bonds anyway?” “Can’t I invest in something else like equities or mutual funds?” or “how to purchase bonds in India?”. To answer these sorts of quandaries and quests, let’s comprehend the bond market first.

What are Bonds and Bond Markets?

A bond is simply a certificate or a document issued by private organizations, government entities, and other institutions to investors for raising working capital and meeting the unattended demands in return for semi-annual or annual interest payments and repayment of the whole principal amount upon maturity. Here, business entities, instead of approaching banks for credit money, prefer to increase the funds via public through investment bonds. 

The most common investments we witness in India are in mutual funds or fixed deposits. Some investors try equities, from which again, they expect prompt gains in less time. The bond market can give you a healthy return if invested for a stipulated time frame like a minimum of 3-years or more. However, the interest gained on bonds will be taxable as per the income tax slab rates. This makes investors withdraw from investing in bonds. 

There are a lot of important things you’ll be missing out on gaining if you skip bond markets from your investment trajectory. Like, they offer portfolio diversification, stable returns unlike equities, secure investments, liquidity, etc.  

Reasons to Buy Bonds From BondsIndia

If there’s an investment vehicle that’s less risky and safe for investors who are looking for capital protection and wealth building, it’s going to be “bonds” under fixed income securities. As they say, don’t put all the eggs in one basket, this rule applies to investments as well. Even during the darkest hour, bonds give you the desired hope and financial support you are looking for. Be it economic shakeout or stagflation, bonds never disappoint you when it comes to financing your needs during an emergency. So, here are a few reasons listed below, explaining why you should opt for buying bonds from BondsIndia.

Simple Investment Process: Unlike offline modes, where an investor gets clogged up with plenty of paperwork and document submissions, with BondsIndia, you can buy bonds online and open a free trading account in 3 following simple steps – complete your KYC, choose your bond, and make your investment. It takes a few minutes to onboard on to this amazing trading platform. As and when you enter BondsIndia, you see several types of bonds like Tax-Free bonds, PSU bonds, zero-coupon bonds, convertible bonds, perpetual bonds, etc, in which you can invest and accumulate your wealth by enjoying the interest you get periodically.

Provides Market Insights: There might be a lot of online bond trading platforms in India, but you rarely come across a platform like BondsIndia that provides real-time market insights. You can find out what are the top bonds to invest in India. The best part is that you can see the bond’s performance month-wise or year-wise. In addition to that, there’s a deal of the day section that covers the best bond deals trending in the market. Bond price or face value, coupon rate, yield, maturity date, type of bond, and IP frequency are some of the details you can find on the platform. These clear-cut details help investors make informed investing decisions. 

Get Daily Updates: Keeping a tab of every market update is like you’ve got your work cut out for you. It’s an arduous job for any investor to make a note of changes that happen very often. Unless you are an analyst, preparing sheets to know the pulse of the market isn’t part of the job description. So, to alleviate this situation, BondsIndia provides daily updates on the platform, where you can compare the performance with other bonds that are trading online. Through this, you get the impression of which bond to choose to park your money into. If you are new to the bond market and willing to make your first move, BondsIndia is a one-stop solution for all your investing queries and answers that you are looking for. 

Say Adios to Offline Bond Trading: Today, with the advancement in modern technology and affordable internet, investors can access markets and all the necessary insights related to them with just a click. Online bond platforms like BondsIndia simplify the way one buys and sells bonds. Whether you are far away from your abode, or at your friend’s wedding, online platform and start investing in the bonds you would like to opt for. As people barely step their foot out during these pandemic times, this online feature works like magic to the investors. Not only does it allow you to continue your uninterrupted online investments, but it also keeps the run-of-the-mill paperwork at bay. 

Can Start Small: The bond market is open for investors of every income group. Though you are from the higher or middle or lower bracket, you can begin your investing journey on BondsIndia with as little as Rs 1000. However, the minimum investment value differs from one bond platform to another. So, this opportunity has opened the doors to all types of investors. Irrespective of your profession and how much you make monthly, platforms like BondsIndia welcomes you with both hands, giving you a green card to take your first step to invest in the bond market with an infinitesimal sum of money.  

Summary

If you are an investor who wants to play safe, bonds are your perfect go-to investment choice. Although bonds might not commit to giving you substantial gains, they will surely serve your financial hurdles during urgent times. So, what are you waiting for? Start investing with BondsIndia, choose the bonds you want to invest in, and make your investment in bonds, including the secondary bonds market.

Why is BondsIndia better than IndiaBonds?

When it comes to making investments, various options are available to investors. One popular choice that often gets overlooked is investing in bonds. 

Investing in bonds has many advantages. For one, when investors invest in bonds, they give themselves a chance to earn a stable income. Secondly, bonds are usually very liquid, meaning they can sell them quickly if they need to.

Another great thing about investing in bonds is that there are now many online bonds platforms that make it easy for retail investors to invest in bonds. These platforms allow investors to find the perfect bond portfolio for their needs. Through an online platform, investors can quickly and easily start investing in bonds.

Why is BondsIndia better than IndiaBonds

About BondsIndia 

BondsIndia, a Launchpad Fintech Private Limited brand, is a technology-driven model that simplifies fixed-income securities‘ complex beats for investors. 

They provide a digital platform for retail investors to buy and sell bonds. Their primary focus is on providing a trading platform and educating the investors about bonds.

About IndiaBonds

IndiaBonds is a financial company that provides an investment platform to investors so that they can access the fixed income securities market. It offers curated bonds to investors, facilitates bond sales, and provides reports and insights.

Why is BondsIndia better than IndiaBonds? 

1. Minimum investment amount 

Different platforms have different minimum investment requirements. 

With BondsIndia, an investor can start investing with just Rs. 1,000. 

On the contrary, with IndiaBonds, an investor will require a minimum investment of Rs 10,000.  

2. Wide variety of products 

BondsIndia provides a wide variety of products to investors, such as corporate bonds, tax-free bonds, Initial Public Offering(IPO), 54EC bonds, government bonds, etc. They also provide daily research reports, market insights and selected deals to the investors.

3. Customer service 

The most important thing to keep the customers happy is customer service.

BondsIndia provides a remarkable customer experience; the customer service is fast, professional and reliable. 

4. A highly experienced research team 

With the BondsIndia platform, investors benefit from a highly experienced research team, thus providing the best-in-class analysis to its investors to make a wise and right choice. 

5. User friendly  

Usually, trading in bonds is considered a bit more complex than other instruments. 

With BondsIndia, the user experience is impressive, the entire process is flawless, the website is easy to use, and it also provides guidance to investors regarding security selection.

From the above points, we can say that BondsIndia provides a broader range of products, a user-friendly experience, a highly competent research team and exceptional customer service than IndiaBonds. 

Conclusion

Bonds can be an excellent option for several reasons, and thanks to online platforms, it’s easier than ever to get started.

Online bonds platforms offer transparency and convenience that isn’t always found on other platforms. Investors can research and invest in various bonds with just a few clicks.

With BondsIndia, investing in bonds is a hassle-free experience; investors can quickly know everything about fixed-income securities; thus, making an informed decision.

Why is BondsIndia better than IND Money?

As the world becomes increasingly digital, more and more people are turning to online platforms to do transactions. One area in which this is particularly true is the bond market.

Online bond platforms offer a number of advantages over traditional methods of investing in bonds. Perhaps the most significant benefit is that they allow investors to purchase bonds from around the world, regardless of location. Additionally, online platforms often have lower fees than traditional brokers, and they offer investors a wider range of investment options.

Another benefit of online bond platforms is that they provide investors with greater transparency. 

One of the best online bonds platforms to buy bonds in India is BondsIndia.

Why is BondsIndia better than INDmoney? — Why is BondsIndia better than IND Money?

About BondsIndia 

BondsIndia was launched by a technology-driven model that provides all services related to investment in fixed-income securities. It was launched by Launchpad Fintech Private Limited.

It is a digital platform that allows investors to buy and sell bonds. Additionally, they provide daily research reports, market insights and selected deals to the investors.

About INDmoney

INDmoney, previously known as INDwealth, is an online platform that provides services such as financial planning, organising finances and tools to help save and invest. Finzoom Investment Advisors Ltd owns it. 

Why is BondsIndia better than INDmoney?

1. Fees

There are many online bonds platforms in India, but not all are free. 

With BondsIndia, an investor can easily trade without sign-up fees, transaction fees, or withdrawal fees. They also provide research reports and educational content that is free of cost. 

On the other hand, INDmoney charges a withdrawal fee from the investors though there are no sign-up or transaction fees. They also charge fees for additional services, such as financial planning, tax management, etc. 

2. One-stop shop for fixed income securities 

BondsIndia is a one-stop shop for fixed income securities. It provides a wide range of products to invest in, such as corporate bonds, tax-free bonds, 54EC bonds, government bonds, fixed deposits, etc. BondsIndia has over 10,000 bonds, where investors can invest. 

3. Customer service 

Many online platforms provide various products to invest in, various other services like financial planning, tax management, etc. However, the most essential thing that makes a customer loyal is customer service.

With BondsIndia, customer experience is astounding. It is a first of its kind bond platform in India, with impressive ease of curating a bond portfolio and the overall experience. The customer service is fast, professional and reliable. 

4. Ease to use

Investing in bonds is usually considered a bit more complex than other instruments. 

However, with BondsIndia, the investment process is seamless. The platform is very easy to use, and the process is simple so that retail investors can easily access the bond market. 

5. Tech integration with ICCL

In India, the only platform with a tech integration with Indian Clearing Corporation Limited (ICCL) is BondsIndia. This helps to provide a real-time online trade settlement facility.

Looking at the points, we may say that BondsIndia provides a better overall experience to the customers, a wide variety of products to invest in at low cost and providing high-class customer service to its clients than INDmoney. 

Conclusion

Online bonds platforms provide investors who do not have the time and resources to invest in bonds through the traditional investment broker. They also offer transparency and convenience that is not always found on other platforms.  BondsIndia is one of the best online bond platforms that provides a trading platform and educates the investors on how to make the trade. 