- KredX Editorial Team
- 24 Jul 21
- Bond investment,Investor
Capital preservation with a hint of steady income has always been the USP of bond investments. Accordingly, this investment instrument enjoys immense popularity among risk-averse and conservative investors.
However, just having an idea of the features and limitations of an investment instrument is not sufficient to jump on the wagon. As an intending investor, you need to be familiar with its ins and outs. Of course, it includes having a proper idea as to how and where to invest in bonds.
Although online investment portals like KredX have made it easier for individuals to invest in instruments like bonds, PMS, and digital gold, it is wise to check the steps involved to simplify the process.
On that note, let us jump into the basics of bonds investment online and how to make it work in your favour!
Notably, these investment channels have made it easier for investors to buy bonds online. However, if you prefer to initiate and complete all investment-related formalities digitally, you could invest in bonds via platforms like KredX. Such a platform acts as a marketplace and enables investors to streamline the purchase and sale of investment instruments.
Different Ways Of Investing In Bonds – In Brief
You can invest in bonds in several ways. However, the route often depends on the type of bond you want to acquire. Here are a few basic ways of parking your money in this investment instrument –| Online Investment Channels | Description |
| Broker | You can buy bonds online from certified brokers. Usually, the bond price set by one broking agent differs from that of another. |
| Government | In case you wish to buy government bonds, you can do so through online NSE portals. |
| ETF Or A Mutual Fund | Investors who wish to diversify their portfolio often choose mutual funds or ETF bonds investment options. |
| Online Investment Platforms | Reputed online platforms like KredX serve as a marketplace for investors. These feature multiple investment instruments and allow investors to pick one that matches their investment objectives. |
Steps To Invest In Bonds Online
Here is a gist of how you can invest in bonds via online platforms –- Step 1 – Log in to KredX's official portal
- Step 2 – Look for the Bonds tab
- Step 3 – Check the available bond options to select the most suited option
- Step 4 – Select how many units you want to purchase
- Step 5 – Click on the 'Book Now' button
Things To Keep In Mind Before Investing In Bonds
Here is a list of things you should keep in mind to make an informed decision when it comes to bonds investments –- Maturity: This factor helps determine how a bond reacts to a change in market interest rates. Note that bonds with a longer maturity period are highly volatile to interest rate risks.
- Investment Cost: To gauge the overall cost of investing, make it a point to check both bond prices and brokerage charges. However, don't base your investment decision entirely on cost. Make it a point to weigh the interest rate as well.
- Credit Rating: Usually, investors hesitate to invest in a bond as they are unsure about the issuer's repayment capability. As an investor, you can eliminate such doubts by checking a bond's credit rating before buying it.
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