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

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

The company makes bonds easier to access for retail investors by offering three distinct types: government bonds, corporate bonds, and tax-exempt bonds.

Varun Sridhar, CEO, Paytm Money He said, “This is just the beginning of bond investing in India. We believe that bonds are the best way for first-time investors to enter the capital markets and every Indian should own a diversified wealth portfolio with bonds forming an essential part of it. We will continue to bring the best technology-driven features to investors the safety and security they deserve.

Paytm said the bonds on the Paytm Money app present investors with all relevant information in one place and turn everything into a return so that investors can analyze and understand the returns they can earn.

Now, investors will not have to go to different sources to get information about coupon vs payout, clean price vs dirty price, coupon frequency, coupon history dates etc. instead find it all in one dashboard on 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 the capital markets.

Bonds are a safe choice for investors who are looking for stable income and steady returns on their investment and can diversify their portfolio to get good returns. One can invest in Government of India Bonds, with maturities ranging from 16 days to 39 years, giving investors the flexibility to manage their investments across maturities. The yield on these bonds is currently in the range of 7-7.3 percent per annum. Moreover, the bonds can be sold at any time, without any penalty/premature lock-in, giving investors the flexibility to manage their investments.

Tax-exempt bonds are a great investment for Indians. One can invest in tax-exempt bonds, issued by PSUs, such as NHAI, IRFC, REC, etc. with yields of up to 5.8 percent per annum, and maturity ranging from 5 months to 13 years.

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