Paytm Money launches bond investing on its platform — continues to drive innovation by simplifying investing
Mumbai: 23rd May 2023: One97 Communications Limited (OCL) which owns the brand Paytm, India’s leading mobile payments and financial services company, today announced that its wholly-owned subsidiary Paytm Money Limited has launched the most advanced bonds platform for retail investors in India. The company is simplifying bonds for retail investors and enabling them to invest in three types of bonds – government, corporate and tax-free.
Having been the first to bring easy investments in direct mutual funds and equity investments, Paytm Money continues to be at the forefront of innovation in the Indian capital markets. Bonds on the Paytm money app present investors with all relevant information in one place, and convert everything to yield so investors can analyse and understand the returns they can earn. Now, investors will not have to go to different sources for information on coupon vs yield, clean price vs dirty price, coupon frequency, coupon record dates, etc, and instead, find it all on one dashboard on the 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 capital markets.
As a SEBI registered broker, Paytm Money is leveraging the existing strong regulatory framework to innovate and bring a simple, secure, and transparent bond product to India. It has achieved so with investor safety features such as limit order as the default order type, prices compared across both NSE and BSE, and the best exchange rate pre-selected, credit ratings from multiple rating agencies, with the lowest being the default rating, and many more such features. Currently, Bonds on Paytm Money is being launched with an early access waitlist program.
Bonds are a safe option for investors who are looking at a steady income and fixed returns on their investments and can diversify their portfolio for good returns. One can invest in Government of India Bonds, with maturity ranging from 16 days to 39 years, giving investors great flexibility in managing their investments across all time horizons. The yield on these bonds is currently between 7-7.3% per annum. Further, bonds can be sold on the market at any time, without any premature penalty/lock-in, giving investors flexibility in managing their investments.
Tax-free bonds are a great investment for Indians. One can invest in tax-free bonds, issued by PSUs, like NHAI, IRFC, REC, etc at yields of up to 5.8% per annum, and maturity, ranging from 5 months to 13 years. Investors, who wish to expand their portfolio, can also look at corporate bonds like Indiabulls Housing Finance, Edelweiss, etc where depending on the credit profile of the company, and the maturity of the bond, one can earn up to 15% per annum.
Varun Sridhar, CEO, of Paytm Money said, “At Paytm, we have revolutionised mobile payments and at Paytm Money, we are at the forefront of innovation in the Indian capital markets. This is just the start of bond investing in India. We believe bonds are the best way for first-time investors to enter capital markets and every Indian should have a diversified wealth portfolio with bonds being a core part of it. We will continue to bring the best technology-driven features for investors with the safety and security they deserve.”
Paytm Money continues to drive wealth creation by enabling users with investment products like Mutual Funds, Stocks, IPO, F&O, ETFs, NPS & more. Paytm Money’s offerings of giving way to small ticket investments in mutual funds and stocks contribute to financial inclusion in India.