How to invest in NCD/ Corporate Bonds in India? Is there any online platform like Groww or Zerodha?

Investing in Non-Convertible Debentures (NCDs) or corporate bonds in India typically involves a few steps. While platforms like Groww or Zerodha primarily focus on mutual funds and stocks, there are other platforms and methods you can use to invest in NCDs and corporate bonds:

1. Directly through Issuing Companies:
* Many companies issue NCDs or corporate bonds directly to investors. They often advertise these offerings through newspapers, their websites, or financial portals.
* You can apply for these NCDs/bonds by filling out the application forms and submitting them along with the required documents and payment.
2. Through Stockbrokers or Financial Advisors:
* Some full-service stockbrokers offer the facility to invest in NCDs and corporate bonds.
* They may have tie-ups with companies issuing NCDs or bonds or provide access to the bond market through their platforms.
* You can contact your stockbroker or financial advisor to inquire about available options.
3. Online Platforms:
* While Groww and Zerodha primarily focus on mutual funds and stocks, there are other online platforms that facilitate investments in NCDs and bonds.
* Platforms like ICICI Direct, HDFC Securities, 5paisa, Kotak Securities, and others may offer options to invest in corporate bonds and NCDs.
* These platforms usually provide information about ongoing bond/NCD issues, facilitate online applications, and manage investments.
4. Bond Marketplaces:
* There are specific bond marketplaces like NSE goBID, BSE Bond Platform, and NSE Bond Portal that allow investors to directly buy and sell bonds.
* These platforms may require you to have a demat account and may involve trading bonds in the secondary market rather than subscribing to new issues.
Steps to Invest:
* Open a Demat Account:
* You need a demat account to hold bonds and NCDs in electronic form.
* Most online platforms and stockbrokers provide demat account services.
* Research and Selection:
* Research the companies issuing NCDs or bonds. Understand their credit rating, the coupon rate offered, maturity period, and other terms.
* Evaluate the risks associated with the investment, including credit risk and interest rate risk.
* Application and Payment:
* Once you’ve selected the NCDs or bonds you want to invest in, fill out the application form provided by the issuer or the platform.
* Make the payment through online banking, cheque, or other acceptable methods as specified in the application.
* Monitoring and Redemption:
* Monitor your investments regularly through your demat account or the platform you used.
* Corporate bonds and NCDs typically have a fixed maturity period. At maturity, the issuer will redeem the bonds and credit the principal amount to your registered bank account.
Important Considerations:
* Risk Assessment: Assess the credit risk associated with the issuer. Higher returns often come with higher risk.
* Tax Implications: Understand the tax implications of investing in bonds and NCDs, including interest income and capital gains.
* Documentation: Keep all documents related to your investment securely for future reference.
Before investing, it’s advisable to consult with a financial advisor to assess your risk tolerance and investment goals. This approach will help ensure that NCDs and corporate bonds fit into your overall investment strategy.