Grip Invest, a leading high-yield investment platform, has launched the second edition of its proprietary report, “Gripping the Boom”, with a focus on ‘Millennial Momentum in Bond Investing’. The report highlights a significant generational shift as Millennials increasingly move away from traditional savings options, such as fixed deposits, toward corporate bonds.
One key factor driving this trend is the reduction in minimum investment requirements, which has dropped from Rs 10 lakh to just Rs 10,000, thanks to regulatory changes.
This aligns with CRISIL’s forecast that India’s corporate bond market will double by 2030, reaching Rs 100-120 lakh crore. Millennials now make up 63% of all corporate bond investors on Grip Invest, with their average investment size increasing by 1.8 times between 2023 and 2024. Additionally, overall corporate bond investments have surged by 200%.
This report also highlights that the global equity market capitalisation stood at $109 trillion and the global bond market at $133 trillion which means the global bond market is bigger than the equity market. However, in India, the equity market cap stood slightly over $5 trillion while the Indian bond market is valued at $2.6 trillion. It indicates despite having a sizeable bond market in India, there is a significant scope for exponential growth from the current levels.
Female participation in corporate bonds has also seen a notable rise, with a 52% increase from 2023 to 2024. Many female investors are drawn to the stability of corporate bonds, with a 54% rise in first-time female investors during Q1 and Q2 of 2024. This reflects the growing appeal of risk-managed and diversified portfolios.
Corporate bonds are attracting interest across India, not just in metro areas. While investments in corporate bonds came from over 3,000 pin codes, top 10 cities contributed only 43% of total investments. With 71% of Grip Invest’s corporate bonds rated ‘A’ or above, offering returns of 12% and at an attractive tenure of 18 months, the asset class is becoming a mainstream investment option.
Nikhil Aggarwal, Founder and Group CEO of Grip, noted, “Corporate bonds are no longer just for large institutions; they are now accessible to everyday investors, thanks to regulatory changes and increasing digital demand.”