Millennials Drive Growth in Corporate Bond Investments According to Grip Invest

Millennials Drive Growth in Corporate Bond Investments According to Grip Invest

A recent report from Grip Invest reveals that millennials now represent 63% of all corporate bond investors on its platform, indicating a significant shift in investment behavior towards corporate bonds as a mainstream choice. The report, titled ‘Gripping The Boom: Millennial Momentum in Bond Investing,’ highlights how this generation is moving away from traditional savings methods and embracing corporate bonds.

Between 2023 and 2024, the average investment in corporate bonds has surged by 1.8 times, showcasing the growing interest among everyday investors rather than just large institutions. This trend is aligned with CRISIL’s prediction that India’s corporate bond market could potentially double by 2030, reaching at least ₹100 trillion.

Nikhil Aggarwal, founder and CEO of Grip, emphasized that factors such as enhanced accessibility, a broadened risk appetite among millennials, and a preference for digital investment experiences have contributed to this transformation. “Corporate bonds are now viewed as a viable investment option for a wider audience,” he noted.

Interestingly, the appeal of corporate bonds extends beyond major cities, with investments originating from over 3,000 pin codes. Notably, the top 10 cities only account for 43% of total investments, indicating a widespread interest. The report points out that 71% of Grip Invest’s corporate bonds are rated 'A' or above, offering attractive returns of around 12% over an 18-month tenure.

Regulatory changes have also facilitated this shift, particularly the reduction of the minimum investment requirement from ₹10 lakh to ₹10,000, making corporate bonds accessible to more investors. Aggarwal expressed optimism about the future, stating, “As regulations continue to evolve, we are committed to providing our users with democratized access to this valuable investment asset.”