10 Best Bond Brokers in India Everything You Need to Know!

10 Best Bond Brokers in India Investors always seek more returns and are risk averse while investing. Early-career investors typically take more risks at the start of their careers or in their early and late 20s, and as they get older, they diversify their portfolios by moving out of stocks and into fixed-income securities such as bonds and private debt. There is no risk associated with the security purchased and it is based on the rate of return. Some brokers offer platforms for bond investing. In this article, we will learn about the best brokers in India.

What are bonds?

Bonds are debt securities in which investors provide loans to governments or corporations. Buying a bond means lending money to the issuer, making regular interest payments, and receiving your principal back at maturity. They ensure capital preservation, regular and continuous income, and portfolio diversification.

Key factors to consider before investing in bonds

Key concepts include issuer, par value, coupon rate, coupon payment, maturity date, yield, bond rating, market price, bond type, callable/non-callable bonds, and zero coupon bonds. It provides fixed income but is exposed to risks such as interest rates, credit, and inflation. Bonds are commonly used in portfolios to diversify and manage risk. Before purchasing a bond from a broker, check if the bond is registered with SEBI.

Understanding Types of Bonds

Bonds are classified into several types, including government treasury bonds, local government bonds, corporate bonds, high-yield bonds, mortgage-backed securities, floating rate bonds, zero coupon bonds, call bonds, convertible bonds, and inflation-protected bonds.

eligibility

Previously, high net worth individuals and financial institutions could purchase these products in India, while retail investors could purchase government bonds. However, individual investors could invest in a variety of bonds.

Consciousness

India’s bond market is one of the least penetrated markets. Unlike other developed markets, such as the US, where individual investors can invest in or trade bonds, India had previously allowed this only to financial institutions and banks. The recent inclusion of retail investors will certainly add more value, exposure to investors and liquidity to the system.

10 Best Bond Brokers in India #1: GoldenPi

Abhijit Roy and Samir Baran Pratihar co-founded the company in 2017 and it was registered in Bengaluru. Zerodha supported the startup. The SEBI licensed debt broker provides a platform for investing in fixed income assets such as listed corporate bonds, illiquid private IPOs, corporate fixed deposits, treasury bills, treasury bills and government securities. They do not charge customers for transactions. Strategic partners include Axis Securities, IIFL Securities, 5 paisa and Money by Tata Capital. Bond trading worth Rs 2,500 crore takes place through the platform.

Top 10 Bond Brokers in India #2: Wint Wealth

In 2020, Wint Wealth was founded by Ajinkya Kulkarni, Abhik Patel, Vinay Dubey, Shashank Chimaladari, Anshul Gupta and Sruthi Sivakumar. Zerodha and Cred supported the startup. We provide services for fixed income investments such as fixed deposits, government bonds, corporate bonds, and government bonds. The company claims to have over 53,000 investors and is valued at over Rs. 130 billion. They recently launched a securitized debt product that aims to invest in multiple listed bonds starting from Rs. 100,000.

Top 10 Bond Brokers in India #3: The Fixed Income.com

Tirth Shah, who co-founded the company, launched it in 2019. The company is part of Tipsons Group, which has been in operation for 30 years. They provide services for fixed income investments including fixed deposits, government securities, corporate bonds, bond IPOs and government gold bonds. They have facilitated investments of over Rs 1,700 crore and served over 1,00,000 users since inception.

Top 10 Bond Brokers in India #4: 5paisa

Founded in 2015, the company is led by Nirmal Jain and is headquartered in Thane, Maharashtra. It is a subsidiary of IIFL Holdings. The company offers a wide range of services, including stock brokerage and bond purchasing platforms. They have a client base of over 2 million users.

Top 10 Bond Brokers in India #5: IndiaBonds

It was co-founded by Aditi Mittal and Vishal Goenka and launched in 2021. They offer a variety of services including bond trading, bond IPOs, government securities, and Treasury gold bonds. There are no brokerage fees or commissions.

Top 10 Bond Brokers in India #6: BondsIndia

Ankit Gupta and Puneet Aggarwal co-founded BondsIndia, which was founded in 2020. They provide services such as bond purchasing, fixed deposits, and bond IPOs.

10 Best Bond Brokers in India #7: HDFC Securities

HDFC Securities is a subsidiary of HDFC Bank. They have a customer base of over 11 lakh. They provide services across a variety of asset classes, including stocks, gold, debt, and real estate. These include stocks, derivatives, mutual funds, term deposits, NCDs, insurance, bonds and currency derivatives.

Top 10 Bond Brokers in India #8: ICICI Direct

ICICI Direct is part of ICICI Securities, a subsidiary of ICICI Bank. We provide services. Online trading and investment services are available to over 500,000 consumers. Trading of stocks, commodities and currencies is one of the services offered on BSE, NSE and MCX. The company also offers equity products, home loans, loans against securities, term deposits, bonds, NCDs, mutual funds and initial public offerings (IPOs).

Top 10 Bond Brokers in India #9: Bondskart

JM Financial supports and supports BondsKart through its Institutional Fixed Income Division (or “IFID”). Under the direction of Ajay Manglunia, IFID was established within JM Financial’s Investment Banking, Wealth and Securities (or “IWS”) division in 2019. Since then, IFID has managed over 100 issuances and mobilized over INR 1,00,000 crore. They host nearly 80 premium rated bonds ranging from AA to AAA through their platform.

Top 10 Bond Brokers in India #10: NSE goBID

Individual investors can purchase government securities (G-Sec) on this Internet marketplace. Treasury bills and Government of India bonds containing the Government of India’s pledge to pay interest and return capital through the NSE goBID platform.

conclusion

In conclusion, investing in bonds or private bonds will provide investors with stable returns. However, understanding the risks associated with investing is important for all investors because invested capital trumps returns. There have been instances where investors have lost valuable money due to the inaction of financial regulators and credit agencies, making it essential to keep a close eye on the economy. What do you think about bond brokers? Let us know your thoughts in the comments section below.

Written by Santosh

By leveraging the stock screener, stock heatmap, portfolio backtesting and stock comparison tools on the Trade Brains portal, investors have access to comprehensive tools to identify the best stocks, update stock market news and make informed investments. there is. .