Golden Pi Bonds can be the perfect investment if you are looking for a safe and reliable way to earn a return on your investment without volatility.
The bull run of 2020 – 2021 has attracted a lot of retail investors in the stock market.
Investors saw an easy money-making opportunity and went full in, however, 2022 has been a patience check for these retail investors.
Interest rise halted the stock market in a range band.
A good investor invests in a range of asset classes, a portfolio of equity, debt, and even FDs.
Each asset class has some purpose and an ideal portfolio is like a buffet of a variety of assets in a perfect mix.
One of the assets of this buffet is called a Bond, we will have a look at what is bond investing and what purpose it serves and also will review the Golden Pi bonds investment platform.
- Why to invest in bonds
- Golden Pi Bonds
- Is Golden Pi Safe?
- What types of bonds are there on Golden Pi?
- How do I open a Golden Pi account?
- Do I need a Demat account for Golden Pi?
- How do I invest in Golden Pi?
- Where will the bond interests get credited?
- What is the minimum investment in GoldenPi?
- GoldenPi Charges
- How does Golden Pi make money?
- Can you lose money on a Bond investment?
- How do I sell my GoldenPi bonds?
Why to invest in bonds
#1. Regular Income
Bonds rate of return is fixed at the time of investment which gives a steady fixed income stream.
A bond is like giving a loan and the bond issuer is obligated to pay interest and return the principal on maturity.
A good bond is generally safer, the risk of volatility and losing the principal amount is almost negligible.
Bonds diversify a portfolio and reduce risk. It adds a balance to risky equity investing.
The performance of bonds is not correlated to stock markets and in times of panic when stocks fall, bonds hold their value or even increase due to the inflow of money to this asset class.
#4. Preservation of Capital
Bonds can be used for the preservation of capital as the principal amount is returned on a fixed maturity date.
#5. Tax Benefits
Some types of bonds provide tax-free interest.
Note: A lot of the above benefits depend on the types of bonds, the credit history of the issuer, and the interest rate environment.
There are cases of bond issuers defaulting, chances are less but it’s still possible. Therefore, careful research and understanding of risks are important in bond investing.
Now if bond investing makes sense to you, the question comes is from where you can invest.
A few years back bond investing was limited only to HNIs due to their high ticket size but the development of fintech platforms like Golden Pi has made bond investing accessible to small retail investors.
Golden Pi Bonds
Is Golden Pi Safe?
Golden Pi is the first platform to offer bond investing to retail investors.
4000+ Cr. worth of bonds are listed and 2000+ Cr. worth of transactions already happened on the platform.
Golden Pi has a strategic partnership with institutions like Zerodha, the #1 Demat broker in India, AXIS bank, and IIFL Securities.
Golden Pi is just a platform where bonds are listed and facilitates buying bonds; however, your bonds are stored safely in the Demat account without any dependency on the platform itself.
So bond investing through Golden Pi can be considered safe.
What types of bonds are there on Golden Pi?
Golden Pi has created a collection of bonds for different types of goals as below
#1. Ultra Short-Term Bonds
Bonds that will mature in the next 1 year are ultra short-term bonds.
Suitable if you want to park your money for the short term with fixed returns.
#2. Highly Safe Bonds
Bonds rated Triple A(‘AAA’) by credit rating agencies ICRA, CRISIL, etc.
These are highly safe bonds ideal for senior citizens.
#3. Tax-Free Bonds
Bonds where returns are exempted from income tax.
Ideal for tax savings and portfolio diversification.
#4. Bonds for Senior Citizens
Bonds issued by public sector banks or guaranteed by the state government, giving monthly or quarterly interest income.
Investors can earn regular cash flow with very low risks.
#5. Public Sector Bank Bonds
Bonds are issued by public sector banks in order to raise capital to improve their business operations.
Considered safe bonds since public sector banks are under the control of the central government.
#6. State Government Guaranteed Bonds
Bonds where principal and interest payouts are guaranteed by state governments.
These are highly safe bonds.
How do I open a Golden Pi account?
You need a scanned copy of the following documents to open a Golden Pi account online
- Address Proof
- Driving License
- Voter ID
- Canceled Cheque
- Demat account details
For the entire process on opening a Golden Pi account, you can follow the below video
Do I need a Demat account for Golden Pi?
Your bonds are stored in the Demat account, therefore a Demat account is needed for Golden Pi.
If you already have a Demat account you can link that, otherwise Golden Pi will help you open a Demat account with a leading discount broker like Zerodha.
How do I invest in Golden Pi?
Once the account is created on Golden Pi, complete your KYC to start investing.
After that click on the Collections menu or you can search for a specific bond using the search box on the right side.
Under Collections, you will find a basket of bonds curated by Golden Pi for a different goal type.
Select your basket and inside you will find a respective list of bonds, select one that matches your goal or requirement for more details.
Here you will find all the details about the issuer, credit ratings, debt quality, and the breakdown of cash flow on your investment.
Once you select a bond and click on Invest you will receive a mail from the Golden Pi platform with the final Quote as below
The settlement amount mentioned in the above mail needs to be transferred through RTGS to confirm purchasing of the bond.
Also, the payment does not go to Golden Pi but to an official Reserve Bank Of India account as below.
You will receive these details by mail once you complete the KYC.
Once payment is received you will receive the below mail with confirmation and details of your investment that is credited to your Demat account.
You can check the units allotted in the Demat account statement of your Demat account holder.
This is the overall process of investing in Golden Pi bonds.
Where will the bond interests get credited?
Bonds interest gets credited to the bank account linked to Demat account on the respective due date.
What is the minimum investment in GoldenPi?
Golden Pi platform allows you to buy bonds for as low as Rs. 10,000.
Golden Pi doesn’t charge anything from customers for any transaction on their platform.
How does Golden Pi make money?
If Golden Pi doesn’t charge then how does it make money this is a valid and important question.
Golden Pi helps financial institutions list their bonds on their platform and provide them with good reach to retail investors and that’s how would be making commissions from these financial institutions.
Can you lose money on a Bond investment?
Bond is less risky and safer investing but that doesn’t mean you cannot lose money in Bonds.
You can lose money if the bond issuer defaults or is unable to repay.
A bond is more or less like a lending loan to an issuer and there is a risk of not receiving the money back.
Therefore it’s very important to do proper research on the issuer and not take a riskier bet for higher returns.
How do I sell my GoldenPi bonds?
To sell Golden Pi bonds before maturity you have to list them on NSE/ BSE. However, if you are not aware of the process you can contact the GoldenPi team and they can help sell the bonds.
Bond investing is not a mechanism to generate wealth but to preserve, so do not take huge risks for great returns, instead focus on safety.
It can be a great way to diversify and earn a fixed regular income.
Consider factors like credit rating, maturity date, and interest rate. Do thorough research and understand the risk well.
Always try to go for AAA+ bonds since they are the safest, rated by credit raters. Make sure that the bond you are selecting serves the purpose.
Is Golden Pi registered with Sebi?
Yes, Golden Pi is the first to be licensed as a debt broker by SEBI. More
Is GoldenPi owned by Zerodha?
Zerodha has invested in GoldenPi through its VC arm RainMatter, so by that, it is a joint owner of the platform.
Zerodha is also a strategic partner, it provides a Demat facility to GoldenPi users.
Can we buy bonds from Zerodha?
There are few Government Bonds & Corporate Bonds listed on Zerodha Coin however choices are very limited.
GoldenPi provides you with a huge range of Bonds, which you can select from a collection as per your goal.
Is 18+ required for Demat account?
No, you can open a Demat account and trade as a minor.