Welcome to Aspero!
We’re truly excited to have you join our community. Investing can feel like a big step, but we’re here to make it simple, safe, and rewarding. Let’s take this journey together, helping you achieve your financial goals with confidence.
Here’s a quick guide to help you get started:
What are Bonds?
Bonds are simple financial instruments where you lend money to an issuer (like a company or government) in return for regular interest and repayment of the principal on maturity. Think of it as a smarter way to earn fixed returns.
How Safe Are Bonds?
Compared to equities and mutual funds, bonds offer a relatively more stable and predictable return. While Fixed Deposits (FDs) are often considered the safest, investment-grade bonds listed on Aspero strike a balance between safety and better returns.
Bonds v/s Stocks, Mutual Funds & Fixed Deposits
Risk of Defaults in Bonds
In India, the risk of bond defaults has historically been low, especially for investment-grade bonds. In FY24, the investment- grade default rate remained low at 0.3%.
However, defaults have occurred, so it’s essential to conduct due diligence before investing. We’ve seen no defaults on the bonds listed on Aspero thus far. Our platform offers only SEBI-regulated, investment-grade bonds for your peace of mind.
What Happens in Case of Defaults?
Bondholders have a significant advantage—they are prioritized for repayment before shareholders in the event of a default. This means that while there’s a risk of losing money, bondholders are more likely to recover their investments compared to shareholders.
Liquidity for Bonds
Retail bond investing is still in its early stages in India. The Securities and Exchange Board of India (SEBI) has proposed a liquidity window to make it easier for bondholders to exit their investments, which should come into effect soon. In the meantime, consider exploring low-tenor bonds on Aspero. These bonds offer flexibility without locking your money for longer than you’re comfortable with.
Why Aspero?
Fully SEBI-regulated Online Bond Platform Provider (OBPP), trusted for 4+ years
Facilitated bond sales worth over ₹17,000 crores
Flexible tenors: 6 months to 6 years
Frequently Asked Questions
What are the key takeaways from this article?
We’re truly excited to have you join our community. Investing can feel like a big step, but we’re here to make it simple, safe, and rewarding. Let’s take this journey together, helping you achieve your financial goals with confidence.
Who should read this article?
This article is designed for retail investors, first-time bond buyers, and anyone looking to understand fixed income investments in India.
How does this relate to my investment portfolio?
Understanding these concepts helps you make informed decisions about asset allocation and build a diversified investment portfolio.
