Attributed to – Saurav Ghosh, Co-founder, Jiraaf
A Maturing Market
“2024 has emerged as a landmark year for Indian bonds, particularly government securities and high-rated corporate bonds. Strong domestic demand and the rising participation of retail investors have served as significant drivers of growth. The inclusion of Indian Government Bonds (IGBs) in the JPMorgan-EM Bond Index has further bolstered the market, attracting sustained foreign fund inflows.”
Lowering Barriers to Entry
“June 2024 saw the Securities and Exchange Board of India (SEBI) take a decisive step to reduce the minimum face value of corporate bonds from ₹1,00,000 to ₹10,000. This move has substantially lowered the entry barrier for investors, encouraging greater retail participation in the bond market.”
Investment Outlook and Strategies
“While potential policy shifts in developed economies like the United States could pose challenges to bond prices in 2025, the Indian bond market presents a compelling investment case. Retail investors should consider allocating capital to a balanced mix of government and corporate bonds. Utilizing bond laddering strategies can also help mitigate volatility risks.”
Maximizing Opportunities
“To fully capitalize on these opportunities, it is crucial for investors to choose reliable Online Bond Platform Providers (OBPPs). These platforms not only offer secure investment options but also provide valuable market insights and analysis, empowering investors to make informed decisions.”
