BondsIndia Review: Is This Online Bond Platform Worth It?
Have you ever chased higher returns thinking they’d get you to your financial goals faster?
You’re not alone. Many investors operate under the “more is better” mind-set — without fully considering the risk that comes with it. The reality? Higher returns often walk hand-in-hand with higher risk.
In recent years, more and more investors have been looking for options that outperform fixed deposits (FDs) without sacrificing safety.
That’s where new-age platforms like BondsIndia are stepping in, offering high-yield bonds that aim to strike the right balance between return and risk.
But is it as simple as it sounds? Let’s dive in.
Have you ever lent money to a friend, expecting them to pay you back with a little extra for your trouble?
That’s essentially what a bond is — only here, the borrower could be the government or a large corporation, and the “extra” is the interest you earn.
Bonds allow entities to borrow money from the public, promising to return the principal plus periodic interest.
But if bonds are such a fundamental part of the economy, why aren’t they a household investment choice in India?
The truth is, the bond market is often called the ‘backbone of the economy’, yet retail participation remains low. Why?
This is exactly where platforms like BondsIndia come in — aiming to make bond investing as simple as buying a mutual fund or a stock.
At its simplest, a bond is a loan you give to an entity, whether that’s the government or a private company.
In exchange, they agree to pay you interest at fixed intervals and return the principal on maturity.
Sounds easy enough, right? But here’s where the real questions begin:
These aren’t just academic concerns — they can directly impact your returns and liquidity.
That’s why reading the fine print, understanding credit ratings, and knowing your exit options are critical before investing.
Think of government bonds — or G-Secs — as the gold standard of fixed-income investments in India.
Issued by the Government of India, they’re about as safe as you can get in the debt market.
But does safe always mean best? Let’s think about it:
While G-Secs offer unparalleled safety, they can fall short on liquidity and may offer modest returns compared to riskier debt instruments.
They’re a good fit for conservative investors who value stability over aggressive growth.
Quick Facts:
Why did corporate bonds remain out of reach for so long? The answer is simple — high entry barriers.
For years, only large investors could participate.
But with SEBI’s recent move to reduce the minimum investment to ₹10,000, the gates have finally opened for retail investors.
Sounds exciting, right? But before you dive in, some important questions need answers:
The bottom line: corporate bonds can offer attractive yields, but they demand careful research and a healthy respect for risk.
Would you lend money to someone without knowing if they can pay it back? Probably not.
That’s exactly why credit ratings exist — they give you an idea of an issuer’s repayment ability.
But here’s the tricky part:
While credit ratings are a great starting point, they should never be the only thing you rely on.
Always pair them with your own checks on cash flows, debt levels, and business stability.
Here’s a quick list of the big names:
But do all these agencies use the exact same yardstick?
Smart investors compare ratings across multiple agencies — especially when the market is shaky.
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 |
Is all debt created equal? Definitely not.
Bonds vary in safety depending on what backs them — and as a retail investor, this is worth paying close attention to.
If the issuer goes bankrupt:
For most conservative investors, secured debt should be a top priority.
BondsIndia is an online platform designed to make investing in fixed-income securities simpler.
Operated by Launchpad Fintech Private Limited, it acts as a digital marketplace for buying and selling bonds.
Sounds like a one-stop shop, but let’s pause for a reality check:
The truth: while the regulatory framework helps prevent fraud, it cannot eliminate the possibility of default. Your own due diligence is non-negotiable.
1. Bonds
A wide selection of bonds, with filters for coupon rate, tenure, credit rating, and face value — making it easier to match investments with your goals.
2. Initial Public Offerings (IPOs)
Details of current and upcoming bond IPOs, including:
3. G-SEC STRIPS
Stripped securities from Government of India bonds or treasury notes. You can trade the interest and principal separately as zero-coupon bonds.
💡 Knowledge Tip: “Stripping” means breaking down a coupon-bearing bond into individual interest (coupon) and principal parts.
For example, a 10-year bond with semi-annual coupons can be stripped into 20 coupon instruments and one principal instrument.
4. 54EC Bonds
For those who have sold immovable property and want to save on long-term capital gains tax. Conditions:
5. Fixed Deposits
Corporate FDs from reputed issuers like;
These are for investors seeking predictable returns with relatively low risk.
Interest on bonds and other fixed-income products can be paid monthly, quarterly, or semi-annually—depending on the issuer’s terms.
But before locking in a pay-out frequency, it’s worth asking yourself:
Fixed interest pay-outs are great for steady income seekers—such as retirees or those funding regular expenses. But for long-term wealth builders, a reinvestment strategy can make all the difference.
With a starting investment as low as ₹10,000, BondsIndia opens the door for many first-time bond investors.
But here’s the golden rule: accessibility ≠ suitability.
Before you dive in, think about:
The low entry point is attractive, but these products work best when they fit into a well-planned asset allocation strategy—not as a replacement for core, safe assets.
BondsIndia markets itself as a next-gen online bond platform, boasting:
It’s undeniably convenient. But remember:
Bottom line: The platform is a great tool—but tools don’t replace research.
This platform is designed for investors willing to take on higher risk in search of better returns than traditional fixed deposits or government bonds.
It may suit:
But before investing, ask:
Pro tip: Allocate here only after securing your emergency corpus and core investments.
Investors earn in two ways—interest income and capital gains—both of which are taxable.
Interest Income
The interest earned from bonds is added to your Gross Total Income (GTI) and taxed as per your individual income tax slab rate.
Capital Gains
Capital gains arise when you sell the bond for more than its purchase price. These gains are classified based on the type of bond and holding period:
For Listed Bonds:
For Unlisted Bonds:
The online bond platforms say their bonds offer “higher returns than FDs and are less risky than equity.” Sounds promising, 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:
So, are bonds “less risky” just because they’re not stocks? Not quite.
Even senior secured bonds 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:
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.
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 were frozen.
And here’s the twist:
These weren’t underperforming funds.
They had consistently outperformed fixed deposits for years.
For many investors, they 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.”
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 BondsIndia 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.
TruCap Finance Ltd, a Non-Banking Financial Company (NBFC), raised funds by issuing Non-Convertible Debentures (NCDs) to the public.
These funds were used primarily for lending to small businesses and providing gold loans.
While TruCap boldly advertised attractive coupon rates (13%+), the associated risks were often buried in the fine print—a red flag for vigilant investors.
The Problem with Chasing High Returns
Many investors are drawn in by the notion that “higher interest is always better.”
However, in the world of bonds, returns are directly proportional to risk. TruCap is a prime example of how this can go wrong.
What Went Wrong?
TruCap Finance attracted investors with the promise of high returns—over 13%—through bonds backed by small business and gold loans. But behind the glossy pitch, its financial foundation was weak.
As loan defaults rose, its credit rating was sharply downgraded, triggering early repayment clauses.
But TruCap didn’t have enough liquidity to pay investors back.
In desperation, it turned to the Marwadi Chandarana Group for a ₹100 crore bailout, expecting part of the funds by mid-June.
But delays in the fund infusion, along with slower-than-expected loan collections, left the company unable to meet its obligations.
On July 16, 2025, TruCap defaulted.
A few days later, CARE Ratings downgraded its bonds—turning a high-yield promise into a painful lesson for retail investors.
Rating Downgrade and Default
On July 18, 2025, CARE Ratings (CareEdge) downgraded TruCap’s ratings, citing its inability to meet principal and interest payments on NCDs due on July 16, 2025.
CARE Report Excerpt (July 18, 2025): CLICK HERE FOR CARE REPORT
As of May 31, 2025, TruCap faced ₹103 crore in debt repayments over the next three months, while holding only ₹57 crore in unencumbered cash.
Expected inflows:
Despite these expectations, timely liquidity was not ensured, leading to default.
Lessons from the TruCap Story
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.
A Certified Financial Planner (CFP) can help you:
In short: Don’t risk your peace of mind for a few percentage points.
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