Grip Partners with Oxyzo to launch Corporate Bonds Investment offerings
21 October 2022: India’s leading multi-asset alternative investment platform, Grip, today announced the listing of Investment Grade-rated Corporate Bonds on its platform as an opportunity for individual investors to invest in. Investment in Corporate Bonds through the Grip platform starts as low as INR 10,000/- and offers 8-11% pre-tax yield to maturity (YTM) over a tenure of 12-36 months.
Through Grip’s platform, individual investors will be able to discover Corporate Bonds that are rated, ‘A’ or above by reputed credit rating agencies such as CRISIL, ICRA, and India Ratings (Fitch), implying a low risk of default. Corporate Bonds being marketed will be held in Demat form and listed on the stock exchanges to enable secondary trading, should the investor need to exit before maturity.
Highlighting the new offering, Nikhil Aggarwal, founder and CEO, Grip, said, “With a strong community of over 300,000 investors, our endeavor is to innovate and democratize alternative investment options on a regular basis for them. Corporate Bonds are yet another opportunity for investors to generate attractive returns as these are secured and rated financial instruments, listed on the stock exchanges, and offer inflation-beating returns with lesser volatility, compared to equity markets. We are incredibly excited to enable investing in Corporate Bonds in a seamless tech-enabled manner for our investors.”
With increasing interest rates and inflation, Investment Grade Corporate Bonds are expected to offer an attractive risk-reward arbitrage of 70-100% higher returns than fixed deposits. Investors could consider adding Corporate Bonds to their portfolio, however, their allocation may vary depending on the overall objectives. For example, an investor with a higher risk appetite may consider a lower allocation to bonds and a higher allocation to equity markets or alternative assets like unlisted equity; while a more risk-averse investor could consider a higher allocation to corporate bonds and a lower allocation to equity markets.
Ruchi Kalra, Co-Founder & CFO at Oxyzo Financial Services Pvt Ltd, said, “At Oxyzo, our aim is to continuously innovate in the financial services space through end-to-end capabilities across origination, deployment, curated structuring and distribution enabled through technology. Through our partnership with Grip, we want to enable rated, secured and low risk investment option for the growing community of retail and individual investors in the country.”
Bond prices and interest rates have an inverse relationship. The price of bonds goes up when interest rates decline and vice versa. Over the last 6 months, interest rates across the globe have seen sharp hikes as central banks are trying to curb inflation. These higher interest rates have reduced bond prices and yields to be earned by investors have increased, making this a good time to start building a bond portfolio to lock in higher yields.