India has become one of the most attractive markets for investment in the world. Several of the top corporates have set up business centers here including Walmart, Facebook, Google and Microsoft to name a few. Moreover, many Indians have taken up leadership positions in global conglomerates as well. Along with this renewed confidence, the government has also made several reforms in order to make investments in India more conducive.
This growing confidence in India and Indians is making NRIs also consider investing in their homeland. If you’re an NRI then, along with the other traditional investment options like real estate, mutual funds, and fixed deposits, we urge you to consider investing in bonds too. The biggest advantage of investing in bonds is that they offer:
A. Higher fixed returns than fixed deposits
(Sovereign and AAA: around 7% – 8.5%, AA: around 9% – 10%, A : around 10.5 % and above etc. approximately)
B. Offer greater stability and security of timely payments on a fixed schedule
This is the ideal option for NRIs who have family back home and need a regular flow of income
, be it to build a house, save up for retirement, enable cash flows to meet the expenses of your parents, or grow your capital at a faster yet safer pace.
Here’s a simple guide to how you can invest in bonds:
STEP 1. – Select the Bond/s that you want to invest in
The first step involves browsing through the latest bonds available in the market. It is advisable that NRIs invest only in NRI eligible Bonds if they plan to invest and hold units in their own Demat accounts. Also, NRIs can invest only in Bonds available in the secondary market. They cannot apply for Bond IPOs.
If you are an NRI, you can choose corporate bonds, public-sector bonds, or tax-saving bonds based on your financial goals. GoldenPi is a one-stop destination where you can browse through the latest set of bonds available in the primary and secondary market. You could also check out the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) websites to get information related to bonds.
STEP 2. – Documentation
To buy bonds from the secondary market, NRI clients must hold an NRO account through which the transaction will take place.
The following documents that are required:
If you are investing in Bonds via GoldenPi, rest assured that all your documentation and processing will be done by our dedicated KYC desk.
Note: You can contact GoldenPi to know the latest set of NRI eligible Bonds.
STEP 3. – Receiving the Bond Units in Demat Account
For the purchase of bonds from the secondary market, Sample Deal Sheet or consideration sheet is generated with all the details of the transaction (buyer details, seller details, price, yield, etc). You’ll have to sign and send a scanned copy to us to complete the purchase process. Then you have to remit the purchase amount for the bond to ICCL/NSCCL or directly. You can use manual or online RTGS payment to remit the money. (ICCL/NSCCL are the counterparty settlement bodies in India.)
The bond units will be transferred by ICCL/NSCCL to your Demat account on the same day.
To sum up:
You can invest in bonds via GoldenPi
As India’s first online platform for bonds and debentures, we at GoldenPi have simplified the entire bond investment process for you. From selecting the top bonds in the market to completing the transaction process for you, we follow a completely transparent and smooth process, making investments in bonds easy and effortless.
Reach out to us to start investing in bonds.