Indian investors should think about bond investments, say experts; here's why

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₹1 lakh to ₹10,000, experts believe that bonds have become a more attractive investment tool for retail investors. SEBI's move has made bonds easily accessible to retail investors, and at this time, when interest rate reversal is expected in the markets, experts say Indian retail investors should look towards bond investments along with their equity build-up.

Also Read: Will investing in bonds be made easier in India? Lower face value of corporate bonds will make bond investments attractive and increase the accessibility of bonds to a wider range of retail investors. It could increase non-institutional investors' involvement in the corporate bond market.

Also Read: Zerodha’s Nithin Kamath hails Sebi’s move that boosts retail participation in bond market According to Pravesh Gour, a senior analyst at Swastika Investmart, with more ordinary investors purchasing bonds, the reduced investment level of ₹10,000 will initiate a positive feedback loop. As a result, more bonds will be issued, and the secondary markets will see intense trading activity in the coming years.

"This wise decision may encourage regular investors to purchase bonds. With all the changes over the past few years, SEBI has done a fantastic job of enabling small investors to purchase bonds," said Gour.

Also Read: The evolution of bond investment in India: Sachetization and its implications Shweta Rajani, the head of mutual funds at Anand Rathi Wealth, also believes the reduction of face value would bring down the person's debenture price, allowing retail investors to explore this place, too. "Once the retail investors explore this space, the bond market's liquidity could improve as more transactions occur, leading to more price efficiency and we could see