Search
Bonds go deeper and wider with digital tech
November 29, 2021
Technology is improving almost all aspects of our life, be it searching for data, transacting with money, investing, medical treatment, travelling, etc. One interesting development with regards to this setting is about a market that has until recently not developed or rather, has not been deep enough for retail investors.
For investing into corporate bonds in India, the preferred and predominant route is mutual funds. Having said that, immediate interest in bonds ought to be a feasible option. While there is a secondary market for corporate bonds in India, the market is wholesale or institutional. Trading lots are of a major quantum, beyond the reach of common investors.
Bonds are listed on the exchange for example NSE/BSE, open to retail investors, however trading there isn’t quite as liquid as to easily buy or sell the instrument of a retail investor’s choice.
Also, what one sees on the exchange screen is the price of the bond. While cost is important, bonds trade based on basis of yield to maturity (YTM), which is the effective annualized return, if you hold the bond till maturity. For data on YTM, professional guidance is required.
Important Links:
- Professional Diploma in Digital Marketing: https://tscfm.org/courses/professional-diploma-in-digital-marketing/
- Post Graduate Diploma in Management (PGDM): https://tscfm.org/courses/3-in-1-management-program/