How to Buy Corporate Bonds Online

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 Invest as low as ₹1,000

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Earn Up to

13.25%

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Corporate bonds are debt instrutments issued by private and public companies to raise finance for expansion, operations, or debt refinancing. These bonds are great investment for investors seeking higher returns than FDs without market volatility. The issuing company makes periodic interest payments to its investors and returns the principal amount on their maturity dates, depending on the type of the bond. 

You can invest in AAA-BBB corporate bonds online through Paisabazaar with a minimum amount of Rs 1,000 and earn fixed returns of up to 13.25% p.a.

How to Buy Corporate Bonds Online Through Paisabazaar

You can buy corporate bonds online through Paisabazaar’s website or mobile app. Follow the steps below to start investing:-

Step 1: Login to your Paisabazaar account through an app or website.

Step 2: Select the bond after comparing credit rating, yield to maturity (YTM) and investment amount.

Step 3: Keep your Aadhaar and PAN Card handy to complete KYC process.

Step 4: Enter bank details for corporate bond purchases, receiving interest and payouts.

Step 5: Link your demat account to receive the bond directly to that account.

Why Invest in Corporate Bonds through Paisabazaar?

• Invest in a range of highly rated (AAA-BBB) corporate bonds.
• Start investing with as little as Rs 1,000.
• Earn fixed returns of up to 13.25%.
• Sell bonds anytime through Paisabazaar.
• Real-time price discovery and assured transaction.
• Enjoy seamless end-to-end digital process.
• Invest without paying brokerage or commission fee.

Investing in Corporate Bonds through Primary Market vs Secondary Market 

Investors can buy listed corporate bonds primarily through two routes:

SEBI Registered OBPP – Online Bond Platform Providers

Online Bond Platform Providers are SEBI-registered digital platforms that allows retail investors to  purchase and sell listed bonds online. Investors can complete the entire investment process digitally, without visiting any broker or bank branch.

On an OBPP, an investor can:-

• Browse the listed corporate bond options
• Buy and sell bonds online
• Compare ratings, yields and maturities
• Offer documents, financial information and disclosures
• Track orders, settlement and transaction details

Things to Consider before Investing in Corporate Bonds

• Compare the bond credit rating, risk appetite and return expectations and then invest accordingly. Higher-rated bonds, such as AAA bonds, usually have lower chances of default and thus, offer lower yields due to the lower risk for the investors. 
• Determine whether the bond is secured (backed by the issuer’s collateral) or unsecured (not backed by collateral)
• Check how easily the bond can be traded in the secondary market.
• Investors can analyze the financial health of the company by reviewing annual reports, business model, financial statements and various financial ratios like debt to equity ratio, etc.
• Check whether a bond has a callability clause for its issuer. A callable bond allows its issuer to redeem bonds before its maturity date.
• Investors should know the implications of tax on bonds while calculating the overall returns from their investments.