If you’ve ever considered fixed income as part of your financial mix, chances are you’ve come across bond IPOs. They’re not as widely talked about as share IPOs but they’ve been gaining popularity for those who want stability and steady returns. And the best part? You can now apply for a bond IPO online without needing to go anywhere.
Here’s a plain and simple guide on how to do it.
Start With the Basics
A bond IPO is when a company or a government body invites the public to subscribe to its bonds for the 1st time. It’s a direct offering. You invest during the window and once approved, the bonds are credited to your demat account. From there, you start earning interest as per the terms.
It’s a smart way to begin your bonds investment journey, especially if you want to avoid market shocks.
Step 1: Have a Demat Account Ready
To begin, you’ll need a demat account. This is where the bonds will be stored electronically once you receive them. Many online brokers and platforms can help you open one if you don’t have it already. It usually takes just a day or two to get started.
Step 2: Keep an Eye on Upcoming Bond IPOs
Once your account is active, the next thing is to find out which bond IPOs are open or coming soon. Most online platforms will show you the available options, along with details like coupon rate, maturity and issuer.
Spend some time reviewing these offers. Some will be from public sector undertakings, while others may come from corporates.
Step 3: Apply Online
After choosing the one you’re comfortable with, go ahead and apply. Log into your investment platform, select the IPO and enter the amount you want to invest. The system will ask for approval from your bank but the funds stay in your account until allotment.
This whole step is quick and doesn’t require any paperwork. That’s one of the reasons many people now prefer going for a bond IPO online rather than through traditional offline routes.
Step 4: Wait for Allotment
After the IPO closes, the issuing company finalizes who gets how much. If you’ve been allotted bonds, you’ll receive a message and see the bonds in your demat account. If not, your blocked amount is released back.
Step 5: Hold and Track
Once the bonds are in your account, the issuer will start paying you interest based on the agreed schedule. When the bond reaches maturity, the invested amount is sent back to your bank account.
Final Word
Getting into bonds investment is no longer a long process. Applying through the online route has made it easier and quicker. Whether you are just starting out or looking to diversify, investing in a bond IPO is a practical step toward building predictable income.
You don’t need big amounts to begin. Just take the first step and let time do the rest.
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