Invest in Bonds offering 9-11% fixed returns.

Corporations need financing to acquire new customers, launch new products, or expand their business. To secure these funds, they can either go to equity markets and liquidate their holdings or look towards the debt market.

Issuing bonds in the debt market allows these institutions to raise funds without giving away their ownership.

Know more about the working of a debt market

A secured bond is a bond that is backed by some kind of collateral like property or asset of the Issuer.

In case the Issuer is an NBFC, a secured bond is generally backed by a pool of personal, gold, and vehicle loans provided by the NBFC to its borrowers.

The term "senior" in a senior secured bond indicates that, in case of a default, these bondholders enjoy higher priority in getting repaid than some other types of investors like equity-holders, sub-debts etc.

Know more what happens when a NBFC defaults

Bonds open up a new asset class for your portfolio. An option with lower risk profile (compared to the equity market) and pre-decided returns.

In traditional investing options, the equity market offers high returns at the cost of increased risk and volatility while FDs offer stability with fixed returns but at the cost of low returns.

Bonds serve as the bridge here. With carefully curated bonds on Wint Wealth, you get 9-11% fixed returns in a short tenure of 1-3 years.

Full disclosure: Investing in bonds is riskier than FDs. Please do your due diligence before investing.

So, investing in bonds can add stability to your portfolio with fixed returns without you having to settle for lower returns.