Illustration: Binay Sinha
Grip Invest has said millennials make up 63 per cent of all corporate bond investors on its investment platform, demonstrating how a “niche asset” has become a “mainstream option”.
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The company’s report, titled ‘Gripping The Boom: Millennial Momentum in Bond Investing’, says there is a generational shift in investment behavior as millennials shift from traditional savings instruments to corporate bonds.
Key findings
– Millennials represent 63 percent of all corporate bond investors on the Grip Invest platform.
– The average investment in corporate bonds increased 1.8 times between 2023 and 2024.
– Female participation in investing in corporate bonds increased by 52 percent between 2023 and 2024.
– Grip Invest reached Rs 450 million in corporate bond investments, an increase of 200 percent.
democratizing access
According to the report, corporate bonds are no longer exclusive to large institutions, but have become accessible to ordinary investors. This change aligns with CRISIL’s projection that India’s corporate bond market will double by 2030 and reach at least Rs 100 trillion.
“The increasing accessibility of corporate bonds, rising risk appetite of millennials and demand for a digital-first investment experience have transformed corporate bonds from a niche investment asset to a mainstream option,” said Nikhil Aggarwal. , founder and CEO of the Agarre group.
Widespread appeal
Interestingly, the appeal of corporate bonds extends beyond major metropolitan areas. While investments came from more than 3,000 PIN codes, the top 10 cities contributed only 43 percent of the total investments. This widespread interest is attributed to corporate bonds that offer attractive combinations of yield, duration and rating: 71 percent of Grip Invest corporate bonds are rated ‘A’ or higher, generating returns of 12 percent over a duration 18 months.
Regulatory changes and market growth.
The report suggests that regulatory changes have played a crucial role in this shift. The reduction of the minimum commitment from Rs 10 lakh to Rs 10,000 has made corporate bonds more accessible to a wider range of investors.
“As regulatory changes continue to open new doors for those seeking balanced risk and reward, we look forward to leading the charge and supporting our users with democratized access to this investment asset,” Aggarwal said.
First published: September 27, 2024 | 15:16 IS
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