angel broking

Zerodha Golden Pi Review – Buy Bond And Debenture Online – Fix Return 10% To 30% Yearly – No Risk

angel broking

Introduction of Zerodha Golden Pi

Zerodha Golden Pi is a bonds & debentures investment platform in which investor can start investing in fixed-income investments. Any merchant can quickly follow this because its set up process is quite easy. 

In this, investor will get an opportunity to earn a higher interest rate on their investment. 

Investor operating the Zerodha GoldenPi can browse the most highly rated bonds from various bond institutions,

high-rated players in the capital markets, and the capital markets division of the bank. 

It was launched in 2017, and its co-founder is Abhijeet Roy.

Zerodha Golden Pi Review
Zerodha Golden Pi

Zerodha Golden Pi – Top Features

Here, I am sharing zerodha golden Pi top features.

I. High Returns on Investments

If investor invest here on this platform, they will get higher interest on their FDs and mutual funds. Because this bond offers a higher interest rate than other investments.

Zerodha GoldenPi
Zerodha GoldenPi – Interface

II. Secure Investment Option

Investing in it is entirely safe. Apart from this, there is no fear of the company going bankrupt. So anyone can invest.

III. Real-time updates and notifications

Here you can monitor or track your portfolio carefully, apart from this, you can also get information about your upcoming payments and other necessary updates.

IV. Top-rated Bonds and Debenture browse facility

Investor can browse the most rated bonds from various bond institutions, capital market high rated players, and the capital market division of the bank.

What is Bond?

Bonds work to pay a regular amount, which we call the “coupon rate” and thus referred to as a fixed-income security.

Bonds are used by municipalities, companies, states, and sovereign governments to finance projects and works. The owner of the bond is the creditor or debtor of the issuer.

A bond statement includes an end date, usually the variable or fixed interest payment terms made by the borrower when the principal bond owner is required to repay the loan.

Benefit of investment in bond 

There are many benefits of bonds that you can take advantage of. I tell you one by one.

  • Under the law of most nations, if an organization fails, its bondholders regularly recover some cash, which is additionally called the recovery amount.
  • Right now, regularly very simple for an establishment to sell a lot of bonds without influencing the cost.
  • The volatility of bonds (particularly short and medium dated bonds) is lower than that of values (stocks). Subsequently, bonds are, for the most part, observed as more secure investments than stocks.
  • A bond is debt security under which issuing holders receive a loan and, according to the terms of the bond, are obliged to pay interest (coupons) or repay the principal at a later date, called maturity

What is a Debenture?

A loan is a debt instrument utilized by organizations and the government to issue debt. Loans are granted to corporates at a fixed rate, dependent on their reputation. 

The debenture is also called a bond that goes about as an IOU between the issuer and the buyer. Organizations use debentures when they have to borrow cash at a fixed loan cost to grow it. 

There are four kinds of debentures, 

  • First and second.
  • Convertible and non-convertible.
  • Registered and carrier.
  • Safe and unsecured. 

Let us study debentures in detail. 

In the residency of the regular man, a debenture is an affirmation of the debt that the association has taken from the general population on the loose. 

They are significant for raising long term debt capital. 

An organization can fund-raise through the issue of debentures, at which there is a fixed place of intrigue. 

A debenture issued by an organization recognizes that the organization has borrowed cash from people in general, which it vows to reimburse sometime not too far off. 

Thus, the holder of the debenture is the bank of the organization.

Benefit of investment in debentures

Let’s talk about some benefits of debentures

  • The debenture guarantees a fixed rate of interest.
  • Debentures provide the most excellent protection to investors. They make an outstanding appeal to conservative minds.
  • The good thing in this is whether the company makes a profit or not. Investors get fixed and regular interest.
  • Companies can quickly raise money through debentures as compared to equity and preference shares.
  • It is a cheap way to raise finance. In which a low rate of interest helps in making them more economical.

Top Best Performing Bond

BondCredit RatingReturnInvest Min Amount
South Indian Bank Limited Bond A+13.06% Rs 210954
The Karur Vysya Bank Bond A+10.43% Rs 211753
South indian Bank Bond A+9.71% Rs 216905
Karnataka Bank Bond A9.39% Rs 220076
Induslnd bank Ltd AA11.80% Rs 966990
UP Power Corporation Ltd Bond AA-11.48% Rs 950733
Fincare Small Finance Bank Ltd Bond A-11.21% Rs 529228

Bond Vs Debenture

There are some major differences between the two that I am sharing here.

Related Post:   What Is Zerodha Kite Connect? Pricing, Features & Login
BondDebenture
Bonds are less risky.whereas debentures are at high risk.
Bonds are secure.Debentures can be safe as well as unsecured.
Bonds give you low interest, but it depends on the issuing body totally.Whereas debentures give you high interest.
It may have bonds of the corporation, government agencies, or it can be of any financial institution.Whereas debentures are issued by private companies.
If you own bonds, you can never convert it to equity sharesbut debentures can be transferred to equity funds.

Types of Bonds in India

There are many types of bonds in India in which you can invest efficiently. One by one, I am sharing.

Corporate bonds : –

This bond is highly risking. If you want to invest in this bond, you need to get a complete study about it and then spend it.

State Government Bonds: –

These bonds are issued by the state government to meet their financial losses. These bonds are listed on the stock exchange. 

These bonds are also backed by the Government, making them low-risk investments.

Central Government bonds: –

These bonds are given by the Central Government to raise reserves. These bonds are provided by the RBI in the interest of the Government. 

The basic role of these bonds is to back monetary deficiency and meet the setback of income in the Government spending plan. 

These bonds are the most secure bonds to put resources into since they are upheld by the Government and will be reimbursed on development.

Tax-free bonds: –

The interest earned on these bonds is completely tax-free in the hands of the investor. Companies like National Highway Association of India (NHAI), 

Railway Finance Corporation of India, HUDCO, Rural Electrification Corporation (REC) issue these bonds.

Public Sector bonds: –

These bonds are relatively low risk because PSUs are under the Government. These bonds are issued by high-class public sector companies to meet their growth and expansion needs. 

Generally, these bonds are issued by companies where the central Government is a majority shareholder.

Municipal and Local authority bonds: –

A municipal corporation or a local authority can raise finance to raise funds for specific goals such as infrastructure, public waterworks, etc.

How to Login in GoldenPi

It is effortless to log in to GoldenPi. If you do not know how to log in, then I tell you to step by step.

1. First, you need to go this link – signup Golden Pi

Zerodha GoldenPi Signup Screen
Zerodha GoldenPi – Signup Screen

2. Then, you have to enter your full name, email id and ‘Mobile number. When your account is created, then the id and password send your email.

3. After that, click on the ‘Login Securely’ option. See below in the image.

Zerodha GoldenPi Login Screen
Zerodha GoldenPi – Login Screen

4. As soon as you are logged in, you will see a dashboard of Golden Pi.

5. Upload document as per requirement – pan card, Aadhar card, photo, Cancelled Cheque or 3 month bank statement, Demat Proof CRM copy.

Zerodha GoldenPi My Profile Screen
Zerodha GoldenPi – My Profile Screen

How to Invest in Bonds & Debentures Using Golden Pi

Above you saw how to log in, now you will know how to invest in bonds and debentures by Golden Pi. Keep in mind some important things before investing.

Minimum investment amount

In this, you can start investing in bonds as Rs 10,000 low amount. It can be based on your investment choice.

Documents required to invest in Bonds & Debentures

You have to understand that what is documents required, If you want to invest.

  • Demat CRM
  • Cancelled Cheque
  • Address Proof
  • Pan Card
  • Passport Photograph

If you don’t have a demat account, then Golden Pi will help you to open a Demat account with one of the best leading brokers.

Before investing, all the documents you upload will be verified through Golden Pi.

How much time does it take for a transaction to complete?

Click to invest option, then choose amount using filter option, then choose bond or debenture as per your future goal.

After that, click on the add to card option. See below in the image

Zerodha Golden Pi Investment option
Zerodha Golden Pi – Investment option

For Bonds and Debentures, Units are transferred to your demat account on the same day when RTGS completes. In some cases, it may take up to a maximum of 3 working days.

For Corporate Fixed Deposits, it usually requires a couple of weeks to process the application and issue the FD certificate.

Note: For bonds and debentures, the investment amount needs to be transferred to the counterparty through RTGS. The units will be transferred to your demat account.

1. When you log in, the dashboard of the GoldenPi will look something like this. You can see in the image below.

2. Talking about investment here, you have to click on ‘Invest’ option

3. Now you have to search bonds or debentures in which you want to invest. For that, if you want, the ‘Filter’ option has been given on the dashboard left side. You can search using filters.

4. Let’s say i searched that I have to invest in ‘The south Indian bank limited’ corporate bond.

5. I would highly recommend you to know about this by clicking on the ‘View Details’ option.

6. When you click on the ‘view details’ option, you will get information about investment details and earning details. 

Related Post:   Zerodha Screener Review - Login & How To Use

7. Like Type of Debt, Coupon, Credit Rating, Payment Term, Call date, Tenure, Annual Returns, Yearly Interest Earned, etc.

Zerodha Golden Pi Investment option Screen 1
Zerodha Golden Pi – Investment option Screen 1

8. Now, You have to click on the ‘Add to Cart’ option

9. As soon as you click on ‘Add to cart’, the option of ‘Add to cart’ will be removed and the option of ‘Remove’ will be seen.

Zerodha Golden Pi Investment option Screen 2
Zerodha Golden Pi – Investment option
Screen 2

10. Then now, you need to click on ‘Cart’ Option. You can see above.

Zerodha Golden Pi Investment option Screen 3
Zerodha Golden Pi – Investment option
Screen 3

11. When you click on the ‘cart’ option, something like this will appear. You can see in the image above. You will see your investment amount. You click on the ‘Invest Now’ option.

12. After that, the golden pi team will review then you will get confirmation on your register email id.

13. Apart from this, you have any types of issues/questions/queries then you can contact and mail. Contact numbers and email id are given.

Golden Pi charges

It is the best thing that Golden Pi does not charge any customer for the transaction. It gives a lot of relief to the customers. In the case of the other platform, it was nice to have GoldenPi.

How to buy non-convertible debentures (NCD) online?

The process of buying an NCD is the same for a share. To buy non-convertible debentures (NCDs), you must have general trading and demat account, 

and You need to log in to your trading account or need to ask your broker to buy NCD on your behalf.

The way you buy and brokerage is the same for shares. Your Demat account has NCDs. Since NCDs charge a fixed coupon rate so that you will receive interest payments on the record date fixed by the company. 

For example, if you buy an NCD on March 20 of golden pi and the record date has been set as March 25, then you will get the interest paid for the year. 

However, if you purchase on Jan 26, you will receive interest in the next year. 

It is interesting to note that the price of NCDs will fall automatically and will be lower on Jan 26 as compared to Jan 20, when you can receive interest. 

Most NCDs currently offer a yield that is higher than most deposits in the bank and provide an even higher initial payment.

How does it work?

A large group of organizations offered non-convertible debentures to investors—a portion of these incorporate India Infoline, Shriram Transport Finance, Religare, golden pi and etc. 

These companies raise funds through NCDs for a period of 1–5 years and offer you a coupon rate or interest rate.

For example, goldenpi offered NCDs at face value of Rs 4000. These NCDs are then listed on the exchanges at a price. And if you want to catch NCDs,

You can hold them. Golden pi will pay you back after tenure, and you will keep taking interest till you keep. If you require money to sell NCDs in exchanges, then you will not get any benefit.

Best Corporate Bond Funds

A corporate bond fund is a plan that contributes at any rate of 80% of its total assets in the highest-rated corporate bonds. 

These mutual funds are capable of giving high returns and bear relatively little risk by investing in high-grade instruments.

Here, I am sharing the top 5 best corporate bond fund; If you are interested, then you can invest in 2020 to generate quality returns.

Fund Name3 – Year Returns5 – Year ReturnsAUM
ABSL Corporate Bond7.59%8.35%Rs 17,587 Cr
Kotak Corporate Bond8.19%8.51%Rs 4,481 Cr
HDFC Corporate Bond7.65%8.51%Rs 12,320 Cr
ICICI Prudential Corporate Bond7.73%8.52%Rs 11,339 Cr
Franklin India Corporate Debt 8.74%8.95%Rs 1,404 Cr

Aditya Birla Sun Life Corporate Bond

ABSL Corporate Bond Fund puts resources into obligation papers gave by highly-rated organizations. It intends to produce generous returns for the financial specialists with an investment horizon of 1 to 3 years.

Returns1 Year Returns3 Year Returns5 Year Returns
Benchmark7.87%6.17%6.99%
Fund9.61%7.59%8.35%
  • The fund has reliably conveyed noteworthy returns, beating its benchmark and class peers.
  • In case you’re searching for an investment choice that will yield high returns at generally safe on investment temporarily, you can think about putting resources into this fund. 
  • The investment portfolio is made of debt protections with a high credit rating to prevent the risk of default at the hand of the investor. 

Kotak Corporate Bond 

The fund keeps up the healthy development of the portfolio inside the prescribed band to keep up appropriate liquidity of the fund. 

It is a loan scheme that mainly focuses on investments in corporate bonds issued by reputed organizations with a good credit rating.

Returns1 Year Returns3 Year Returns5 Year Returns
Benchmark7.87%6.17%6.99%
Fund9.81%8.19%8.51%
  • Investment in this fund can be made with a minimum amount of Rs 5000.
  • The Corporate Risk Reward Bond is also good because it is the best time to invest in the fund and capitalize on the upcoming interest rate changes.
  • The fund has entrusted approximately 82% of assets in debentures and bonds, which gives significant stability to the fund.

HDFC Corporate Bond 

HDFC Corporate Bond Funds are primarily permitted in investing in high-class corporate bonds. Through this fund, you can invest in taking extended and quality returns.

Returns1 Year Returns3 Year Returns5 Year Returns
Benchmark7.87%6.17%6.99%
Fund10.38%7.65%8.51%
  • The best thing here is that the fund has improved its benchmark and category returns in consecutive 1, 3, and 5-year frameworks, indicating a high potential for a repeat performance.
  • With an allocation of approximately 77% for AAA-rated bonds, this fund effectively reduces credit risk.
  • The investment portfolio is designed keeping in mind the credit quality, liquidity, interest rates, and their future outlook.

ICICI Prudential Corporate Bond 

The fund has so far allocated approximately 81% of assets in AAA-rated bonds, effectively protecting the portfolio from credit risk.

Related Post:   Zerodha Coin Review - Invest Direct Mutual Fund With Rs.0 Cost

It is a debt fund that invests in bonds issued by highly rated companies while maintaining the balance of yield, safety and liquidity.

Returns1 Year Return3 Year Returns5 Year Returns
Benchmark7.87%6.17%6.99%
Fund10.19%7.73%8.52%
  • Its portfolio is designed in such a way that changes in short-term interest rates can be capitalized and generate reasonable returns.
  • The scheme earns a significant income through a strategy of buy and hold. This helps the investor to ensure stable income.

How to buy Zerodha Gold Bonds?

Every year, Sovereign Zerodha gold bonds are issued by the Indian government. The bond pays a fixed interest per year, which is paid twice a year. 

The issue is open for a specified period, and you can place an order to purchase units at ‘https://zerodha.com/gold’. 

You need to log in using your kite credentials and enter the bid you want to bid. You can see that below in the picture, which is mentioned.

Zerodha Gold Bonds
Zerodha Gold Bonds

What is government bonds investment?

If we talk about government bonds, then A government bond or sovereign bond is a bond given by a national government. 

as a rule, with the guarantee of paying an intermittent interest installment called a coupon installment and an assumed worth on the development date. Government bonds are expected to help government spending.

What are Fixed Income Securities?

Fixed income securities refer to debt instruments that offer a fixed premium income on your venture. The corpus esteem that one will get post-development of the protection is known ahead of time. 

Along these lines, risk-averse investors favor fixed income securities over market-connected securities; these securities are able for individuals who need to acquire consistent returns too. 

Also, a portion of the fixed-income securities like government bonds, treasury bills are upheld by the government, which guarantees minimal chances of default.

Types of Fixed Income Securities

Recurring Deposits: –

An individual deposit a limited quantity as a regularly scheduled payment for a fixed period that ranges from 1 year to 10 years in a recurring deposit. The loan cost is like a fixed deposit. 

Recurring deposits are like SIP interests in mutual funds. This empowers retail financial specialists with a modest quantity to create a decent reserve of funds over the long haul.

Treasury Bills: –

Treasury bills or T-bills are given by the central government to raise funds. They have transient development with a high of as long as one year. 

T-bills are given with 3 diverse development periods, which are 91 days T-bills, 182 days T-bills and 1 year T-bills. 

T-bills are given at a markdown on face value. At development, the investor gets a face value sum. This contrast between the initial value and the face value is the return earned by the investor. 

They are the most secure transient fixed salary speculation supported by the Indian Government.

Bank Fixed Deposits (FD):-

A bank fixed deposit account gives a fixed interest rate on your first venture. This fixed-salary security is offered by pretty much every booked bank in India. Numerous financial specialists in India have benefited bank FDs. 

This fixed deposit is one of the most popular speculation choices accessible in India. Various banks offer fixed deposit accounts with many developments. 

Financial specialists can settle on FD accounts with development periods extending from 7 days to 10 years. 

Bonds:-

Bonds are fixed salary protections that are given by partnerships and the government, to fund-raise to back business development or new activities. 

They are given at a limited cost all over esteem and can be exchanged for the free market. Hence, a financial specialist acquires an ensured benefit.

Debt Mutual funds

Debt Mutual funds pooled in assets from investors and put the corpus necessarily in different debt instruments, for example, securities, fixed salary securities, etc. 

Interest in these instruments guarantees set returns for the financial specialist. Also, these funds invest in debt securities with good credit ratings. The chances of default of payment on these securities are minuscule.

Contrasted with value situated mutual funds, debt funds are moderately less dangerous, along these lines splendidly reasonable for chance unwilling financial specialists.

FREE Invest Bonds and Debentures using Golden Pi
FREE Invest Bonds and Debentures using Golden Pi

Perpetual Bonds in India

In India, Perpetual bonds are recorded on the stock trades, so if an investor needs liquidity, they can sell the bonds on the stock trade. 

These bonds are regularly given by large development organizations or by banks to finance their long term capital necessities. 

In banks, perpetual bonds come as new Tier 1 bonds, which gives it the qualities of semi value. Just the issuer has the alternative to state that the purchaser of the bond can’t offer it to the guarantor before giving a call choice to the guarantor. Regularly, call alternative dates to happen like clockwork from the bond issuance date.

Conclusion

Zerodha Golden Pi is the only trading platform where traders can earn high-interest rates by investing. Even traders can check their portfolios carefully or get real-time notifications on incoming payments and other necessary updates.

Zerodha Golden Pi FAQs

What do you mean by Debentures?

The debenture is also called a bond that goes about as an IOU between the issuer and the buyer. Organizations use debentures when they have to borrow cash at a fixed loan cost to grow it.

What is Bond in simple words?

A bond is an agreement between two parties. Organizations or governments issue bonds since they have to acquire a lot of cash. 

They issue bonds, and investors get them (in this way, giving the individuals who gave the bond cash).

Are bonds a good investment?

Bonds pay interest usually, so they can help produce a steady, unsurprising stream of pay from your savings. The US Treasuries are the most secure, most liquid ventures on the planet. 

Momentary bonds can be a decent spot to stop a just-in-case account or will require the cash you need moderately soon.

Can I buy gold bonds from Zerodha?

Yes, You have to log in to your Kite credentials and enter the quantity that you want to bid. SGBs are listed on the exchange 10-15 days after the issue and can be traded on Kite.

What is the purpose of a bond?

A bond, otherwise called fixed-salary security, is a debt instrument made to raise capital. They are loan understandings between the bond issuer and an investor, 

in which the bond issuer is committed to paying a predefined measure of cash at indicated up and coming times.

angel broking