The most popular type of investment in the investment world is stock investing. Investing in the stock market offers attractive returns, but this is often accompanied by market volatility, which can quickly deplete your savings. Sparing a portion of your savings towards investing in the bond market is a great way to buffer your investment against the volatility of the stock market.

Bonds are similar to loans in that investors act as lenders. In the bond market, the issuer is the company or organization that sells the bonds. An investor purchases a bond as an IOU from the issuer to the lender.

Bonds are known as Fixed Income Instruments as the investor is aware of the amount of money he will receive once the bond matures.

In the Stock Market, when a company lists its stocks for the public for the first time it is called Initial Public Offering (IPO). Similarly, in the Bond Market when a company raised money for the first time from the public it is called Debt or Bond IPO.

Investing in the Bond Market through IPO is a great way to grow your savings. In this article, lets take a look at the key benefits:

1. Start Early and Gain Advantage In The Competition

In an initial public offering (IPO), you can invest in a high-growth firm at the start of its growth phase. Investing in an initial public offering (IPO) could be your ticket to quick money. Additionally, you might be able to expand your wealth in the long run.

2. A Low Minimum Investment Requirement

Bond IPOs offer the greatest benefit of investing in bonds for as little as Rs.10,000. Bonds are a good investment product for individuals, because it helps them with higher and stable returns from their savings instead of meager returns from Fixed Deposits.

3. More Price Transparency

A direct disclosure of the issue price is provided in the IPO order paper. The same information will be available to you as it is to the bigger investors, therefore.

4. Listed On Exchanges

Indian law requires bonds to be listed on exchanges. This allows investors to track the performance updates of the company thereby allowing them to protect their wealth through continuous monitoring.

5. Easy Investment Process

Investing in a Bond IPO has become very easy thanks to online processes. You can select your preferred IPO in the BondsKart App and make an investment in just a matter of minutes.

Allotments in the debt IPO market are done on a first come first serve basis, unlike equity IPOs, therefore it's vital to subscribe to a bond IPO during the launch itself. Incase of oversubscription, allotment is done by the registrar on a category basis.

Bond IPOs are an excellent way to dip your feet in the bond market. Additionally, with the easy investment process of BondsKart, you can start investing in the Indian Bond Market in a matter of minutes. However, if you are someone who wants to have a better understanding of the bond market, feel free to reach out to us and our dedicated experts will answer and guide you through the process.