Looking for a Wint Wealth review? You’ve come to the right place! We’ll give you an honest overview of what Wint Wealth bonds have to offer.
Wealth is basically an abundance of assets. These assets can be cash, stocks, bonds, real estate, personal property or business, etc.
Wealth provides financial freedom if you are well-diversified and invested in a range of assets.
Being wealthy and investing only in risky assets can be devastating, whereas having some portion of wealth in low-risk and growing assets can provide financial freedom.
Bond investing is referred to as a low-risk wealth preserving asset class.
However, it has its own pros and cons that we will discuss subsequently.
Bonds are a way of raising funds for Government, Companies, or Non-Banking Financial Companies to fuel their growth.
A few years back bond investing was feasible only to high net-worth individuals because of its huge ticket size which used to be at least ₹10,00,000.
But platforms like Wint Wealth have made it possible for retail investors to take advantage of bond investing.
Recently a lot of investors got attracted to Wint Wealth bond offerings of 9-11% returns with a small ticket size of ₹10,000.
So I tried to find solutions to questions like how the Wint Wealth platform works and how one can invest.
Let’s get started.
What is Wint Wealth?
- Founded: 2019
- Headquarter: Bangalore
- Founders: Ajinkya Kulkarni, Anshul Gupta, Abhik Patel, and Shashank Chimaladari
- 41000+ investors buying bonds on the platform
- 700+ Cr. worth of bonds subscribed on the platform
- 0% Defaults
Wint Wealth is one of the startups to facilitate bond investing in India backed by a lot of fintech leaders including Nithin Kamath of Zerodha and Kunal Shah of Cred.
Wint Wealth has for the first time tried to offer a financial product like the bond that was either considered risky or out of reach for retail investors because of high ticket size.
Wint Wealth is trying to solve this problem by providing the same product with low risk also at an affordable price.
Let’s look at the problems in traditional bond investing.
Problems with traditional bond investing
#1. Lack of information
Unlike stocks, you cannot find a lot of information online about bonds.
If you bet on the wrong company due to a lack of information, there is a high probability of losing the entire capital.
#2. Ticket Size
The ticket size of bonds was huge, usually starting from ₹10,00,000.
#3. Return rates
Bonds offering high returns can be unsecured or low rated making them very risky for retail investors.
PROS of Wint Wealth Bonds
#1. Selected companies only
Wint wealth does not just list any company on its platform, rather it studies the company and partners only with good and secured companies based on their analysis.
#2. Sufficient Collateral
Companies offering bonds are basically taking loans and for this, they have to keep their assets as collateral.
Wint wealth checks & selects only quality assets to create a collateral pool for the company listed on its platform.
This makes sure that in case of any defaults, the investments are as safe as possible.
#3. Low ticket size
On Wint wealth, you can start investing in bonds for as low as ₹10,000
#4. Higher returns at low risk
Wint wealth generally offers bonds of 9% – 11% fixed returns and it lists only quality bonds where risk is low
#5. Short Term bonds
Your capital gets locked in bond investing till maturity and this becomes risky in long-term bonds.
When a company raises money for 5-10 years and if the economic scenario changes leading to the failure of the venture it may lead to defaults.
To avoid such situations investing in short-term bonds and then rotating capital in different bonds makes more sense.
Risks in Bond Investing
These risks are not just specific to Wint Wealth bonds but in general for any bond investing.
#1. Credit Risk
In credit risk, investors might lose the capital amount itself because the company whose bonds they invested in has declared bankruptcy.
Wint Wealth does some due diligence to reduce credit risk by creating a security pool of collateral greater than the money raised still, complete recovery is not guaranteed.
#2 Liquidity Risk
If you need urgent money you can sell bonds in the secondary market however, the price depends on the demand and supply and if demand drops the rate of the bond may fall.
This leads to liquidity risk in bond investing. The only option left is to hold the bond till maturity or sell at a loss.
#3. Fraud Risk
Some bonds offer higher returns to attract investors and there are chances that companies offering such returns take some risky bets without proper collateral security.
To reduce such scenarios Wint Wealth does a security check to cherry-pick and list only bonds with quality assets and sufficient collaterals.
Wint Wealth Senior Secured Bonds
There are below types of Bonds
#1. Unsecured Bonds: In this type, there is no security involved and if the company defaults there is minimal chance of recovery of your capital.
#2. Secured Bonds: In this type, there is security in form of collateral and if the company defaults there is a chance of at least recovering the capital amount.
In secured bonds, the senior secured bonds are the ones that are the first to receive their investments in case of company defaults.
That means senior secured bonds are the safest bond type.
How to Invest in Wint Wealth?
Once you land on the Wint Wealth website you need to signup and complete your KYC.
After signup/signin you will see the above dashboard. Here, you will find details of your investments.
To start investing click on Assets menu, and you will find all the bonds that are either available or already sold out.
You can click anyone to see more details about that bond. You will find other important details like the Interest payment period, Principal repayment period, Minimum investment, and Issue size.
Once you are ready to invest click on Invest Now.
Here, select the no. of lots you want to invest in, and also see the total pre-tax returns.
Click on Invest Now and you will be redirected to the payment screen, complete the payment and you will see the bond in your dashboard.
Wint Wealth Review
You might have now understood why Wint Wealth is known as a revolution in bond investing for retail investors.
It is backed by the most trusted FinTech leaders and Influencers, so we can rely a bit on their safety aspect.
Bond investing may or may not be relevant to you depending on your age and risk appetite.
However, understanding this asset class is important since it might help in the future when you will be nearing retirement and looking for safe assets with inflation-beating returns.
Wint Wealth platform is user-friendly and the due diligence that they do at their end and the transparency are commendable.
A safe fixed return of 9 – 11% is not bad at all but need to do your own research before investing as there is still some risk involved.
If you want to check out the Wint Wealth platform do click on the below link and open an account
Is Wint Wealth safe?
Wint Wealth is SEBI regulated and backed by FinTech leaders like Nithin Kamath of Zerodha and Kunal Shah of Cred.
So the platform is quite safe.
Is Wint Wealth backed by Zerodha?
Yes, the founder of Zerodha Nithin Kamath is an investor in Wint Wealth through his company Rainmatter Capital.
What is the minimum investment in Wint Wealth?
You can start investing in Wint Wealth bonds for low as ₹10,000.
Do I need Demat account for Wint Wealth?
Yes, for bond investing Demat account is required not only on Wint Wealth but on any platform.
As per SEBI regulations bonds can only be stored and traded from demat accounts therefore Demat account is required.
Who are the competitors of Wint Wealth?
Some of the competitors of Wint Wealth includes GoldenPi, IndiaBonds, Harmoney, BondsKart, etc.
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