1 day ago 3

Saurav Ghosh explains why now is the best time to explore bonds

Apr 18, 2025, 10:42:35 AM IST

1/10

Why bonds matter in every portfolio

In a rapidly changing investment landscape, bonds are emerging as a vital asset class for Indian investors looking for portfolio stability and predictable returns. With equities remaining volatile and fixed deposits offering sub-inflation returns post-tax, bonds are carving out a space as a reliable middle ground for both capital preservation and growth.

Saurav Ghosh, Co-founder of Jiraaf, believes this evolving sentiment is backed by broader market participation and regulatory clarity. He points out that retail interest in bonds has surged following the introduction of SEBI’s online bond provider platform norms in November 2022, making this an opportune time for investors to explore the fixed-income route.

ETMarkets.com

2/10

Resilient portfolios begin with bonds

According to Saurav Ghosh, bonds help investors build resilient portfolios in uncertain markets. He explains that while equities are volatile and FDs often underperform post-tax, bonds offer stable, inflation-beating returns, typically between 8–15%, with relatively lower risk, making them ideal for balancing market and credit risks.

3/10

Capital preservation meets growth

While bonds are traditionally known for capital preservation, Ghosh notes that during volatile periods, they can also provide better capital growth than equities. With investment thresholds lowered to Rs 1,000 and accessibility through online platforms, retail investors are now actively entering the space with small-ticket investments.

Getty Images

4/10

Bonds offer more than just fixed returns

Saurav Ghosh highlights that bonds cater to a wide range of investor needs—from corporate bonds and G-Secs to sovereign gold bonds. He adds that bonds provide predictable income and are ideal for investors seeking goal-based financial planning, as they are not subject to daily market fluctuations.

iStock

5/10

Corporate vs government bonds – A risk-return play

Ghosh emphasizes that corporate bonds typically offer higher yields than government securities. AAAA-rated bond might yield around 8%, while a BBB bond could offer 13%. He references CRISIL data, noting that the default rate for corporate bonds was just 1.3% in FY24, highlighting the improving credit environment.

ETMarkets.com

6/10

Bonds to fuel India’s $7–8 trillion ambition

As per Saurav Ghosh, India’s expanding bond market—valued at $2.69 trillion as of December 2024—will play a pivotal role in the country’s journey toward becoming a $7–8 trillion economy in the next five years. The corporate bond segment alone has crossed $602 billion, showcasing its growing importance in capital formation.

ANI

7/10

Why this is the right time to enter the bond market

Ghosh believes current market conditions make bonds a highly attractive choice. With rate cuts forecasted and yields at the upper end of the cycle, he suggests locking into bonds now to secure better returns before yields drop. He adds that platforms now allow retail entry with investments as low as Rs 10,000.

THE ECONOMIC TIMES

8/10

Choosing the right bonds – Factors to consider

Saurav Ghosh advises investors to evaluate credit ratings, tenures, and issuer sectors when selecting bonds. He points out that AAA-rated bonds are the safest, while longer tenures can lock in higher rates. Sectors like banking and infrastructure offer stability, whereas emerging sectors offer higher but riskier returns.

Agencies

9/10

Platforms making bonds easier for everyone

According to Ghosh, digital platforms are simplifying bond investing for retail users by offering transparency, ease of execution, and access to a wide range of instruments. Platforms like Jiraaf empower investors to make informed choices and transact efficiently across listed and sovereign instruments.

TIL Creatives

10/10

Bonds as a tool for financial planning

Beyond returns, Ghosh underscores the role of bonds in broader financial planning. He says bonds help retirees manage income steadily and enable young investors to preserve capital while pursuing higher-risk options elsewhere. Tax benefits add another layer of appeal, reinforcing their place in a balanced financial strategy.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

IANS

Read Entire Article