Millennials Dominate With 63% Investor Share In Corporate Bonds: Grip Invest Report

India, September 30th, 2024 | Grip Invest, leading high-yield investment platform, launched the second edition of its proprietary report, “Gripping The Boom,” this time with a focus on “Millennial Momentum In Bond Investing.” The report reveals the seismic generational shift in investment behaviour of millennials, as they make an informed investment pivot from traditional savings instruments like Fixed Deposits to Corporate Bonds.

Regulatory enablers like reduction in minimum commitment from Rs 10 lakh to Rs 10,000 has also enabled this uptick. This aligns with CRISIL’s projection that India’s Corporate Bond market is set to double by 2030, reaching Rs 100-120 lakh crore. Grip Invest’s report on evolving investment behaviour provides valuable insights into how this shift is unfolding.

On Grip Invest, Millennials constitute 63% of all Corporate Bond investors, with average investment increasing 1.8 times between 2023 and 2024. This trend, coupled with a 200% increase in overall Corporate Bond investments have led Grip Invest to reach Rs 450 crore in this category alone. Investors also showed exponential interest in Corporate Bonds indicated by quadrupling repeat investments in 2024.

Within millennials, Female participation in Corporate Bond investing soared by 52% from 2023 to 2024 indicating strong preference. The stability offered by Corporate Bonds found resonance with Female investors who typically tend to prefer diversified, balanced and risk-managed portfolios. It is not surprising therefore that there was a 54% rise in Female investors choosing Corporate Bonds as their first investment from Q1 to Q2 in 2024.

Corporate Bonds drove strong appeal across investor personas and socio-economic segments, not restricted to metros alone. While investments in Corporate Bonds came from over 3,000 pincodes, top 10 cities contributed only 43% of total investments. This democratisation in interest can be attributed to Corporate Bonds offering attractive returns-tenure-rating combinations. 71% of Grip Invest’s corporate bonds are rated ‘A’ or above, typically delivering returns of 12% and at an attractive tenure of 18 months.

Reflecting on the report findings, Mr. Nikhil Aggarwal, Founder and Group CEO, Grip, said, “The findings from our latest report, ‘Gripping The Boom: Millennial Momentum In Bond Investing’, reveal a rebalancing of the financial landscape, where corporate bonds are no longer just the domain of large institutions but a viable, attractive option for the everyday investor. Growing accessibility of corporate bonds, widening risk appetite of millennials, and demand for a digital-first experience with investments have transformed Corporate Bonds from a niche investment asset into a mainstream choice. As regulatory changes continue to open new doors for those seeking balanced risk and reward, we look forward to leading the charge and supporting our users with democratised access to this investment asset.”

Grip Invest has been leading innovation to democratise high-yield investments. It was the first OBPP to enable RFQ-NSE implementation; launch After Market Order feature for the Debt Market; offer Theme-based investing options via Basket, amongst other industry-first interventions. Grip Invest also launched India’s 1st privately placed investment-grade bond with a ₹10,000 face value, which sold out in a record time of 36 hours, setting a benchmark for the category.

To gain more insights and comprehensive industry intelligence, read the complete report, “Gripping The Boom: Millennial Momentum In Bond Investing.”