Get your money working for you
Help your money work harder for you by investing in corporate bonds. Receive fixed interest payments every month, quarter, 6 months or year, and get started with as little as INR1,000.
HSBC has a referral arrangement with Grip Invest (Grip Broking Private Limited), a Securities and Exchange Board of India (SEBI)-registered stockbroker, to enable our customers to invest in corporate bonds[@hsbc-grip-referral].
Key features and benefits
What are corporate bonds?
Corporate bonds are essentially loans, where you lend money to a company for a set period of time – often a number of months or years. Companies issue bonds to raise capital for various purposes, such as expanding their business or developing new products without having to issue new stock.
While your money is invested in a corporate bond, you’ll receive interest payments on a regular basis. Depending on which bond you invest in, this could be every month, every quarter, once a year or twice a year. Then, when your bond matures, the idea is that you should also receive the principal amount you invested back, too.
To learn more about bonds, take a look at Grip's Fixed Returns Academy videos on YouTube.
Is investing in corporate bonds right for you?
It could be right if you:
- Want fixed returnsWith corporate bonds you can earn regular returns through fixed interest payments on a monthly, quarterly, half-yearly or yearly basis.
- Want a potentially lower risk investment than stocksCorporate bonds are generally considered a lower risk investment than stocks, but the level of risk involved varies depending on the type of bond and market conditions.
- Want a regulated investmentThe bonds are regulated and listed on stock exchanges, which means they follow a compliant and transparent investment framework.
- Want a way of diversifying your portfolioInvesting in bonds alongside other investment assets can be a good way of diversifying your portfolio and spreading your risk.
It might not be right if you:
- Want the potential to earn higher returnsIf you want to earn higher returns and are prepared to accept a higher level of risk, bonds may not be right for you. However, they could still be worth considering as part of a diversified portfolio.
- Don't want to accept any financial riskCorporate bonds carry a higher risk than fixed deposits. Accordingly, however, they also provide higher returns.
- Are not an Indian residentThe corporate bonds offered are only available to Indian residents who have a valid PAN.
Your guide to investing in corporate bonds
Whether you're a seasoned investor or you're just starting out, investing in corporate bonds is easy.
Things to know before you invest
You can invest in corporate bonds through HSBC on the Grip Invest platform if you:
- Have an HSBC savings/current account
- Are an Indian resident with a valid PAN
- Have an HSBC Demat Account for payouts and redemptions
Ready to start investing in corporate bonds?
Set up your account on the Grip Invest platform and get started.