Investing in Corporate Bonds

[pyarlath]

Hi i was going through this link Start investing in corporate bonds – Z-Connect by Zerodha.

But it looks like coin is no more holding any bonds…

Question is from where can i invest in corporate bonds?

1. Goldenpi i have heard but is it offering from Zerodha? and is it reputed & big enough customer base that it will not vanish one day? never seen them active in any telly ads or social media handles like sensibull etc…
2. RBI Retail Direct app i have also heard
3. Does kite provide to buy corporate bonds?

[tallerballer]

1. Bonds will mostly come into your demat account, just like your stocks. They not held with GoldenPi. It can go down and you will still get interest and principle. They have no involvement after you buy. You only have to worry about bond issuing company paying you, not GoldenPi.

Check for “Listed” and it will be in demat account and you can trade on exchanges. GoldenPi is not by Zerodha but Zerodha has invested in them.

Btw even it is not listed it could be in your demat account, but I am not sure how to check for it. But if it is listed it is 100% in your demat account.

Btw GoldenPi is one of the few SEBI registered bond platforms (OBBPs), which is more important than it being owned by Zerodha.

2. RBI Retail Direct - This is for government bonds and T-bills, G-secs, SGBs. Not corporate bonds.

3. You can buy the bonds that are already listed, directly like you buy stocks. But you cannot invest in bond from beginning (like a bond IPO). For that you need something like GoldenPi.

[pyarlath]

On the 3rd point can you give me an example of corporate bond listed which i can search on kite?

I searched for an ISN number of some listed bond but it never came up

[sufimonks]

Guys, often misselling happens… investing in corporate bonds is not for everyone.

pls do read this cautionary tale…

How Investing in Bonds Has Helped Me Build My Financial Future

There are always two sides to a story. As someone who invested a bunch of money in bonds & FDs (Bank + company), I want to share my cautionary tale for others to take a lesson. Its a long story & may be I will write a detailed post on it later but writing a quick summary here for now. There is an upside to bonds but there is also an element of risk which cannot be ignored. Most times, this doesn’t get discussed enough. Bonds / FDs helped me during a phase when I was jobless & needed regular i…

[tallerballer]

Example bond is this. ADITYA BIRLA FINANCE LIMITED, Coupon 8.1% p.a, Maturity 9-Oct-2033.

It’s listed a “81ABFL33” on Kite and other apps. You can try to guess the name like this but I find it very hard.

Also, buying listed bonds means they most likely have already started giving interest. They would be trading at premium/discount, etc and you have to consider such things

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Regarding your query, unfortunately Kite does not support basic things like ISIN search.

You have to perform a convoluted process with the hope that the bond is listed on BSE.

1. Open BSE site.

2. On the top right, switch this in “Get Quote” to “Debt/Others”
   

   

3. Search ISIN and pray it comes up (Hit and Miss)

4. Take first name beside the title

Sometimes you can just google the ISIN and maybe get the name of the ticker.

@nithin Please consider adding ISIN search. Kite app already gets all ISINS and instruments from backend, so it is not new complicated feature to build, just have to change what the search bar is searching on the frontend.

Eg: https://kite.zerodha.com/static/json/instruments.json?date=2024-05-02 This gets you all ISINs and Kite app has all this data already. The app is just not searching through this.

[pyarlath]

+1 for the ISIN feature request
+1 for detailed answer for helping me understand…

[pyarlath]

@sufimonks Thanks for the heads up, after hearing the story what is understand is corp bonds are like small caps of the bonds markets invest in them via mf is better else straight Bank FD…

II would like to hear ur experience on GSec Bonds?

Also investing in MF and FD is good for compounding is there any asset for monthly income?

[tallerballer]

@pyarlath

corp bonds are like small caps of the bonds markets invest in them via mf is better else straight Bank FD…

Once again, it depends on bond rating and company issuing the bond. Eg: HDFC Bank and ICICI bank also issue bonds. They are obviously very dependable and low risk.

Some random unheard of 1 year old NBFC will also issue bonds. They are risky.

Bonds also have different risk like equity like equity.

@pyarlath

Also investing in MF and FD is good for compounding is there any asset for monthly income?

FD with monthly interest payments, Post Office MIS scheme in you and your wife’s name, debt mutual funds with Monthly dividend payments (not dependable since interest payments dates are different).

If you have a large corpus you can withdraw fixed amount systematically also, not an income but yeah could be what you are looking for.