Index inclusion a game changer for Indian fixed-income markets: Vishal Goenka of IndiaBonds.com
Vishal Goenka, Co-Founder of IndiaBonds.com believes the the inclusion of Indian bonds in JP Morgan and Bloomberg indices will be a game changer for the Indian fixed-income markets. In an interview with Mint, Goenka emphasised investors should invest in bonds to diversify their portfolios and also highlighted the most important developments in the bond markets in recent times. Edited excerpts: The answer is simple: all financial investors should diversify their portfolios as the basic thumb rule of financial investments.
Bonds offer low volatility and diversification as well as provide regular stable income which is essential for everyone. Previously access to bond investments was not possible for the individual investor and now due to technological innovation and protective regulation, this asset class has been enabled for all via SEBI-regulated online bond platforms like IndiaBonds.com. Bonds also serve as an ideal asset class for more moderate and risk-averse investors and in some cases provide capital preservation and additional income to supplement people’s financial wellbeing.
Bonds, like every other financial asset class, also have certain risks. Investors must read offer documents and rating reports to understand the issuer. The main factors to keep in mind are coupons, yield or returns at the time of investment, maturity and credit ratings; plus, risk factors such as credit, interest rate and liquidity before investing.
Furthermore, aligning bond investments with investment goals and time horizons is essential along with understanding market conditions and their impact on bond prices. Following the above will one in making informed investment decisions. Also Read: Indians buy gold bonds worth a record ₹8,000 cr
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