Paytm Money launches bonds platform, making investing easier for retail investors

One97 Communications Limited (OCL), which owns the Paytm brand, on Monday said that its wholly-owned subsidiary Paytm Money Limited has launched bonds platform for retail investors in India. 

The company is making bonds more accessible for retail investors by offering three distinct types: government bonds, corporate bonds and tax-free bonds. 

Varun Sridhar, CEO, Paytm Money  said, “This is just the start of bonds investing in India. We believe bonds are the best way for first-time investors to enter capital markets and every Indian should have a diversified wealth portfolio with bonds being a core part of it. We will continue to bring the best technology-driven features for investors with the safety and security they deserve”, he said.

Bonds on the Paytm Money app presents investors with all relevant information in one place and convert everything to yield so that investors can analyse and understand the returns they can earn, Paytm has said.

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Now, investors will not have to go to different sources for information on coupon vs yield, clean price vs dirty price, coupon frequency, coupon record dates etc, and instead find it all on one dashboard on the Paytm Money app

The company believes that investing in debt markets in India is still very new and the country has the potential to have 100 million investors, for whom bonds would be the best way to enter capital markets.

Bonds are a safe option for investors who are looking at a steady income and fixed returns on their investments and can diversify their portfolio for good returns. One can invest in Government of India Bonds, with maturity ranging from 16 days to 39 years, giving investors flexibility in managing their investments across the tenors. The yield on these bonds are currently between 7-7.3 per cent per annum. Further, bonds can be sold at any time, without any premature penalty/lock in, giving investors flexibility in managing their investments.

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Tax free bonds are a great investment for Indians. One can invest in tax free bonds, issued by PSUs, like NHAI, IRFC, REC etc at yields of up to 5.8 per cent per annum, and maturity, ranging from 5 months to 13 years. 

Investors, who wish to expand their portfolio, can also look at corporate bonds like Indiabulls Housing Finance, Edelweiss etc where depending on the credit profile of the company, and the maturity of the bond, one can earn up to 15 per cent per annum.