Aspero Review: Promising Returns or Just Another Risky Bet Beyond FDs?

Looking for better returns than what your bank FD offers?
Tempted by the idea of fixed-income investments that feel safer than the stock market?

Platforms like Aspero are now pitching exactly that—higher returns with seemingly controlled risk. But it raises some important questions.

Is this really the best of both worlds—or are we underestimating the risks that come with higher yields?
Can newer platforms deliver on their promises without compromising safety or liquidity?

Aspero claims to offer a fresh approach to fixed-income investing. But before jumping in, it’s worth asking:
What are we really signing up for—and how does it fit into your broader financial picture?

Table of Contents:

1. Understanding the Bond Market
2. What Is a Bond?
3. Government Bonds
4. Private/Corporate Bonds
5. Importance of Credit Ratings
6. Top Credit Rating Agencies in India
7. Types of Bonds Based on Collateral
8. Aspero: Platform Overview
9. Key Features of Aspero
10. Product Offerings
11. Interest Pay-outs
12. Minimum Investment Requirements
13. Key Considerations
14. Platform Features
15. Who Should Consider Investing Through Aspero?
16. Tax Implications
17. Comparisons with Equity: A Deeper Look at Risk
18. The Franklin Templeton Shock: When “Safe” Funds Went Silent
19. What Makes Credit Risk So Tricky?
20. Key Takeaways
21. Conclusion: Why a CFP Can Help You Invest Smarter

1. Understanding the Bond Market

Have you ever lent money to a friend and expected it back with interest?

That’s essentially what a bond is, but at a formal level.

Bonds allow governments and companies to borrow money from the public, promising to repay with interest.

But what makes this market tick?

Why is the bond market called the ‘backbone of the economy’?

And if it’s so important, why don’t more retail investors participate in it?

Clearly, a lack of access, awareness, and ease of investing has historically kept retail investors away.

But platforms like Aspero are now working to bridge this gap.

With easier access to corporate bonds and systematic withdrawal plans (SWP), platforms like Aspero are making the bond market more inclusive for everyday investors.

2. What Is a Bond?

At its core, a bond is a loan made by an investor to a borrower. The borrower agrees to pay back the principal along with periodic interest.

Simple, right? But have you ever wondered:

• What happens if the borrower defaults?
• How do bond prices change when interest rates fluctuate?
• Can you sell a bond before maturity? And if yes, how easy is that?

These questions highlight why understanding the bond’s terms, ratings, and liquidity is essential before investing.

Just like POMIS (Post Office Monthly Income Scheme), bonds provide predictable returns—but with varied levels of risk, liquidity, and taxation.

3. Government Bonds

Think of these as the gold standard of debt investments in India. Issued by the Government of India, these bonds are among the safest.

But is safety the only thing that matters?

• What about returns—can they beat inflation?
• How easily can you liquidate them?
• Is the process of investing in G-Secs user-friendly for retail investors?
• Are there any hidden costs or liquidity traps?

While G-Secs offer unmatched safety, they may fall short on liquidity and returns, making them suitable for conservative investors.

• Minimum Investment: ₹1,000 (in multiples of ₹1,000)
• How to Invest: RBI Retail Direct portal

Compared to POMIS interest rates, G-Sec returns can fluctuate, but their government backing often gives them a safety edge.

4. Private/Corporate Bonds

Why did corporate bonds remain out of reach for so long? High entry barriers.

But SEBI’s recent move to reduce the minimum investment to ₹10,000 has opened new doors for retail investors.

Still, important questions remain:

• How do you judge which corporate bond is trustworthy?
• Should you only go for AAA-rated ones?
• Do higher yields always mean higher risk?
• How do you check the company’s fundamentals or debt servicing history?

In short, corporate bonds offer attractive yields but demand careful research and risk assessment.

This is exactly where Aspero investment claims to simplify things—but as always, it’s crucial to evaluate Aspero reviews, credit ratings, and bond types before committing your money.

Platforms like Aspero Bonds curate private corporate bonds, giving retail investors a chance to access high-yield debt that was once limited to institutions.

5. Importance of Credit Ratings

Would you lend your money to someone without knowing their repayment capacity? Probably not. That’s where credit ratings come in.

But how reliable are these ratings?

• Do agencies ever miss red flags?
• Have there been defaults even among high-rated instruments?
• Should a rating downgrade worry you?
• Can a single rating really capture the true financial health of a company?

While credit ratings are a useful starting point, they must be considered alongside other factors like cash flows and business fundamentals.

Investors exploring options like Aspero Fixed Income products must closely track credit ratings to avoid unexpected defaults.

6. Top Credit Rating Agencies in India

Here’s a quick list:

• CRISIL
• CARE Ratings
• ICRA
• SMERA
• Brickwork Ratings
• India Ratings & Research

Do all these agencies rate bonds the same way?

• How often do they update their ratings?
• Is there a possibility of conflict of interest since the issuer pays for the rating?

It’s crucial to check ratings across agencies and stay updated, especially in volatile or uncertain markets.

Each of these agencies uses a different grading system. Learning how to interpret them helps you gauge bond risk effectively.

Before choosing any SWP scheme in post office or a private bond via Aspero, it’s vital to check how the offering is rated by credible agencies.

Simplified Rating Scale:

Safety Level	CRISIL	CARE	ICRA
Highest Safety	CRISIL AAA	CARE AAA	ICRA AAA
High Safety	CRISIL AA	CARE AA	ICRA AA
Low Risk	CRISIL A	CARE A	ICRA A
Moderate Safety	CRISIL BBB	CARE BBB	ICRA BBB
Moderate Risk	CRISIL BB	CARE BB	ICRA BB
High Risk	CRISIL B	CARE B	ICRA B
Very High Risk	CRISIL C	CARE C	ICRA C
Default	CRISIL D	CARE D	ICRA D

7. Types of Bonds Based on Collateral

Is all debt created equal? Not quite.

Bonds vary widely in safety depending on what backs them. So, what should you look for as a retail investor?

• Senior Secured Bonds: Backed by collateral—your safest bet.
• Senior Unsecured Bonds: No collateral—more risk.
• Subordinated Bonds: Repaid only after senior bonds—higher risk.
• Perpetual Bonds: No maturity—most risky.

If the issuer goes bankrupt:

• Who gets paid first?
• Can you recover anything from a defaulted bond?
• Does the collateral truly offer protection in practical scenarios?

The type of bond matters significantly when it comes to capital protection.

Prioritising secured over unsecured debt is often a wise move for conservative investors.

8. Aspero: Platform Overview

Aspero operates under SEBI’s Online Bond Platform Provider (OBPP) framework.

But what does this regulatory backing actually mean for you as an investor?

• Does it guarantee complete safety?
• Or does it merely ensure basic regulatory compliance?
• How transparent is Aspero in highlighting investment risks?
• Can you depend entirely on the platform’s filters to make informed decisions?

While SEBI’s oversight offers a safeguard against fraudulent practices, it does not eliminate the risk of defaults.

If you’re considering alternatives to post office SWP or traditional MIS schemes, Aspero Investment might appear attractive—but scrutiny is key.

Hence, investors must conduct their own due diligence before committing funds.

9. Key Features of Aspero

• Fully compliant with SEBI OBPP guidelines
• Offers returns in the range of 8% to 14%
• Curated selection of senior secured bonds, rated from AAA to BBB
• Zero transaction fees or commissions
• Flexible investment tenures: from 6 months to 5 years

While POMIS lock-in period is 5 years, many Aspero bonds offer more flexibility with shorter tenures.

10. Product Offerings

Senior Secured Bonds

Aspero features bonds from a variety of sectors:

• Infrastructure: National Highway Infra Trust
• NBFCs: Akara Capital, Indel Money Ltd.
• Finance: Satin FinServ Limited, Muthoot Mini Financiers Ltd.
• Utilities: Criss Financial Limited
• And more…

Fixed Deposits

Choose from institutions like:

• Mahindra Finance
• Suryoday Small Finance Bank
• Bajaj Finance
• Shriram Finance
• Unity Small Finance Bank

Each product comes with a specific risk-return profile.

Are you equipped to evaluate them?

If you’ve searched for the best SWP plan for monthly income in India, you’ll find structured bonds on Aspero may offer similar cash flows—but with market-linked risks.

11. Interest Pay-outs

Interest is typically paid monthly, quarterly, or semi-annually, depending on the bond.

But here are a few questions to consider:

• Are you missing out on the power of compounding by taking periodic pay-outs?
• Would manually reinvesting the interest help maximise returns?
• Could a growth option (like in mutual funds) be more tax-efficient?
• What happens if the issuing company runs into cash flow issues — will interest payments continue?

While fixed pay-outs offer regular income, they may not suit investors aiming for long-term compounded growth. Reinvestment discipline is key.

Unlike a traditional post office SWP, where pay-outs are predictable and government-backed, Aspero bonds depend on issuer stability for timely interest.

12. Minimum Investment Requirements

Bonds

• Minimum investment: ₹350
• Minimum tenure: 9 months
• Minimum interest pay-out frequency: Monthly

Fixed Deposits

Provider	Returns	Minimum Ticket Size	Withdrawal	Minimum Tenure
Mahindra Finance	8.30%	₹5,000	Instant withdrawal post lock-in	12 Months
Suryoday Small Finance Bank	9.10%	₹1,000	Instant withdrawal post lock-in	7 Months
Bajaj FinServ	7.95%	₹15,000	Instant withdrawal post lock-in	12 Months
Shriram finance	10.77%	₹5,000	Instant withdrawal post lock-in	12 Months
Unity Small Finance Bank	9.10%	₹1,000	Instant withdrawal post lock-in	7 Months

When compared to POMIS interest rates or MIS scheme minimum investments, these newer platforms offer more flexibility, but with trade-offs in risk and liquidity.

13. Key Considerations

• Are these investment amounts feasible for your current financial situation?
• What percentage of your overall portfolio should you allocate to such instruments?
• Should your emergency fund be parked here? (Probably not.)

Small ticket sizes improve access — but only when they align with your broader financial strategy.

Low entry barriers on platforms like Aspero Investment attract first-time investors, but these products shouldn’t replace safer instruments like post office monthly income scheme.

14. Platform Features

• Seamless web and mobile interface
• Simple account setup and login
• Filters to search by credit rating, tenure, and yield
• Investments categorised by risk-return profiles

But a user-friendly interface has its limits:

• Can it detect underlying risks?
• Are you over-relying on filters without deeper analysis?
• Does the simplicity mask complex product structures?

Convenience should support, not replace, investor awareness.

Even the best filters on Aspero bonds can’t replace a proper evaluation of credit ratings and issuer fundamentals.

15. Who Should Consider Investing Through Aspero?

• Investors who are comfortable with higher risk within debt
• Extremely aggressive savers seeking enhanced returns
• Those with small experimental capital looking for diversification

Ask yourself:

• Are you prepared to handle potential defaults?
• Can you afford to stay invested until maturity, despite liquidity constraints?
• What’s your contingency plan if the platform shuts down or changes hands?
• Does this fit into your long-term financial roadmap?

Aspero works best for investors who’ve already met essential financial goals and are willing to take calculated risks for potentially higher returns via non-traditional debt products.

If your priority is stable monthly income with zero default risk, traditional options like POMIS SWP plans or senior citizen schemes may still be better suited.

16. Tax Implications

Listed Bonds

• Holding ≤ 12 months: Short-term gains are taxed as per the income slab
• Holding > 12 months: Long-term gains taxed at 12.5% (no indexation)

Unlisted Bonds

• Holding ≤ 24 months: Short-term gains are taxed as per the income slab
• Holding > 24 months: Long-term gains taxed at 12.5% (no indexation)

Interest Income

• Subject to TDS at 10% (both listed and unlisted bonds)

Fixed Deposits

• TDS of 10% deducted at the time of interest credit
• TDS applicable if interest exceeds ₹50,000 (₹1,00,000 for senior citizens)
• You may submit Form 15G/15H to avoid TDS if your income is below the taxable limit

Unlike the post office monthly income scheme, where interest is exempt under certain limits, interest from Aspero bonds is taxable and may reduce post-tax returns.

17. Comparisons with Equity: A Deeper Look at Risk

Aspero says their bonds offer “Zero Defaults”. Sounds promising and even less risky, right?

But let’s pause for a moment—what does “less risky” really mean?

Yes, equities—especially mutual funds—can be volatile.

We’ve all seen markets swing wildly, sometimes falling 40–50% during a crash. But here’s the thing: equity funds don’t “default and will not become zero.”

You don’t lose your capital unless you choose to exit at the wrong time. Historically, markets have recovered.

Patient investors often come out stronger on the other side.

Now contrast that with bonds.

What happens if the bond issuer fails to pay interest or return your capital at maturity?

That’s not just volatility—that’s a default, and it can mean permanent loss. And we’ve seen this before:

• DHFL (2019): Over ₹1,500 crore defaulted—both interest and principal.
• IL&FS (2018): A massive ₹91,000 crore default that shook the financial system.
• YES Bank AT1 Bonds: Retail investors lost everything—100% write-off.

So, are bonds “less risky” just because they’re not stocks? Not quite.

Even senior secured bonds (like the ones curated on Aspero) carry credit risk.

While they’re typically backed by collateral, it’s not a guarantee against loss.

What if the collateral drops in value? What if recovery takes years—or doesn’t happen at all?

Meanwhile, equity mutual funds bring other strengths to the table: diversification, liquidity, and professional management.

And when viewed over the long term, their risk-adjusted returns—especially from large-cap or hybrid funds—can be surprisingly strong.

The bottom line

Bonds may feel “safe” because they’re stable on the surface, but they carry their own kind of risk—just in a different form.

So instead of asking, “Which one is safer?” maybe ask:

• “Can I handle the ups and downs of equity?”
• “Am I prepared for illiquidity or a default in bonds?”
• “Does my portfolio balance growth with safety?”

There’s no one-size-fits-all answer. The key is to match your investments to your temperament, time horizon, and financial goals.

Because at the end of the day, smart investing isn’t about picking sides. It’s about knowing your risk—and owning it.

A disciplined SIP in mutual funds or a POMIS scheme for senior citizens may offer more peace of mind than chasing higher returns through complex debt instruments.

18. The Franklin Templeton Shock: When “Safe” Funds Went Silent

Let’s rewind to April 2020.

Franklin Templeton—one of India’s most trusted fund houses—abruptly shut down six debt mutual funds. Just like that, over ₹25,000 crores of investor money was frozen.

And here’s the twist:
These weren’t underperforming funds.
They had consistently outperformed fixed deposits for years.

For many investors, it felt like the perfect balance of returns and stability.

Until they weren’t.

The pandemic triggered panic redemptions. The bond market froze.

There were no buyers for the low-rated, illiquid bonds Franklin had loaded up on.

And suddenly, investors were locked out of their own money for months.

The funds hadn’t “failed” on paper. But the structure collapsed under stress.

Eventually, most investors got their capital back.
But the lesson was loud and clear:

“Strong past performance isn’t protection against a weak portfolio underneath.”

“History Doesn’t Repeat, But It Often Rhymes”

Now pause for a second.

If a reputed AMC like Franklin Templeton—with seasoned fund managers, SEBI oversight, and daily NAV disclosures—could end up freezing investor money…

…what about platforms offering unlisted bonds from lesser-known issuers?

No regulatory NAV.
No secondary market liquidity.
No guarantee of principal.
And no historical data that’s been tested in a true credit crisis.

We’re not saying Aspero or similar platforms are scams. Far from it.

But ask yourself—

• Do you really know what’s backing that “9.5% fixed return”?
• What if the underlying NBFC hits a cash crunch?
• Who steps in to protect you then?

Even Franklin’s investors had to wait months.

Here, the risks are higher, and the safety net thinner.

Platforms promoting Aspero bonds or other Aspero fixed income products might appeal to yield-hunters, but always ask: are the risks and liquidity constraints worth the extra return?

19. What Makes Credit Risk So Tricky?

Credit events are like earthquakes. You never know when one will strike.

Everything looks fine—until one default starts a domino effect.

That’s why smart investors look beyond flashy returns and ask:

“Can this portfolio withstand a crisis?”

In that sense, products like these aren’t “alternative FDs.”

They’re more like FD lookalikes—wearing a suit, carrying a risk you can’t see.

Before you invest in Aspero, consider whether the returns justify the illiquidity and lack of investor protection—especially compared to regulated credit mutual funds.

20. Key Takeaways

• These platforms like Aspero earn through mark-ups, not transparent fees—always cross-check the final yield.
• Past performance or brand packaging doesn’t erase the very real credit risk of unlisted bonds.
• Since Aspero is registered with SEBI, there are no stringent regulations like mutual funds. There is no skin in the game. Investor protections are limited, and recovering money in case of defaults can be complicated.
• The bond market is less liquid—you may not find buyers when you need to exit.
• Instead of chasing fixed returns on opaque products, consider SEBI-regulated credit risk mutual funds—they offer:
  • Instant diversification
  • Daily NAVs and full transparency
  • Professional fund management and liquidity

Want sovereign safety with zero fees? Try RBI Retail Direct for G-Secs.

21. Conclusion: Why a CFP Can Help You Invest Smarter

Aspero presents a modern, tech-enabled route to access high-yield fixed income products.

However, while the platform simplifies investing, the underlying risk remains significant.

News around Aspero India and similar platforms is growing, but so is the need to critically evaluate whether it aligns with your long-term financial goals.

Only allocate funds you can afford to experiment with — never at the cost of liquidity or core financial goals.

While platforms like Aspero offer an enticing promise of higher returns, they often come with

• hidden risks—limited liquidity,
• concentrated exposure, and
• minimal oversight.

These products may suit aggressive investors with surplus funds, but they’re far from ideal for long-term stability or emergency access.

Instead of locking into opaque instruments, consider regulated, professionally managed options like credit risk mutual funds, which provide better diversification, transparency, and exit flexibility.

Your investments should serve your life goals, not just chase returns. Consult a qualified advisor to strike the right balance between risk, return, and peace of mind.

A Certified Financial Planner (CFP) can guide you to smarter, safer alternatives like credit risk mutual funds, which offer:

• Professional risk management
• Diversified exposure
• Full transparency and SEBI oversight
• Liquidity when you need it

Let convenience enhance, not replace, your investment discipline.