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Illustration: Binay Sinha
Grip Invest has said millennials comprise 63 per cent of all corporate bond investors on its investment platform, marking how a “niche asset” has become a “mainstream choice”.
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The company’s report, titled ‘Gripping The Boom: Millennial Momentum in Bond Investing,’ said there is a generational change in investment behaviour as millennials shift from traditional savings instruments to corporate bonds.
Key findings
– Millennials account for 63 per cent of all corporate bond investors on Grip Invest’s platform.
– The average investment in corporate bonds increased 1.8 times between 2023 and 2024.
– Female participation in corporate bond investing surged by 52 per cent from 2023 to 2024.
– Grip Invest reached Rs 450 crore in corporate bond investments, marking a 200 per cent increase.
Democratising access
Corporate bonds are no longer exclusive to large institutions but have become accessible to everyday investors, according to the report. This shift aligns with CRISIL’s projection that India’s corporate bond market is set to double by 2030 and reach Rs 100 trillion at least.
“The growing accessibility of corporate bonds, widening risk appetite of millennials, and demand for a digital-first experience with investments have transformed corporate bonds from a niche investment asset into a mainstream choice,” said Nikhil Aggarwal, founder and group chief executive officer of Grip.
Widespread appeal
Interestingly, the appeal of corporate bonds extends beyond major metropolitan areas. While investments came from over 3,000 pin codes, the top 10 cities contributed only 43 per cent of total investments. This widespread interest is attributed to corporate bonds offering attractive returns-tenure-rating combinations, with 71 per cent of Grip Invest’s corporate bonds rated ‘A’ or above, delivering returns of 12 per cent at an tenure of 18 months.
Regulatory changes and market growth
The report suggests that regulatory changes have played a crucial role in this shift. The reduction in minimum commitment from Rs 10 lakh to Rs 10,000 has made corporate bonds more accessible to a broader 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 democratised access to this investment asset,” said Aggarwal.
First Published: Sep 27 2024 | 3:16 PM IST
