Top Choice for Indian Investors: High Yield Corporate Bonds List

Seeking Higher Returns

Define High Yield Corporate Bonds
Bonds classified as high yield corporate bonds are those issued by businesses with higher interest rates than those rated government or AAA. These go under the names “below AAA-rated” bonds or “non-investment grade” bonds. Though they have more risk, they offer better returns. Comfortable with moderate risk, Indian investors can look at them to increase their income.

Why Would One Want High Yield Corporate Bonds?

Government bonds and fixed deposits yield lesser returns in India. High yield corporate bonds might be a wise option for those looking for more money. They sell:

• More coupon rates for interest
  
• Constant income from interest payments
  
• Short to medium-term investing choices
  
• Diversification inside a fixed-income portfolio
  

This alternative is worth looking at if you are comfortable with some risk and wish for better returns.

List of High Yield Corporate Bonds 2525

The following is an example of a high yield corporate bonds list that is currently popular in India:

AA Rating

• Edelweiss Financial Services LTD.
  
  • Coupons: ~9.5%
    
  • Tenures: Three to five years
    
  • Alternatives for monthly or annual payouts
    
• Muthoot Finance LTD. (AA Rating)
  
  • Coupon: Around 9%
    
  • Tenure: Two to four years
    
  • Renowned for consistent NBFC operations
    
• Indiabulls Housing Finance Limited (AA Rated)
  
  • Coupon: ~9.25%
    
  • Tenure: Three years
    
  • List NCDs that are accessible here
    
• IIFL Finance (AA Rating)
  
  • Coupon: Approx. 9.5%
    
  • Tenure: Two to five years
    
  • Several payout systems
    
• Shriram Finance (AA+ Rated)
  
  • Coupon: Approximately 8.75%
    
  • Tenure: Three to five years
    
  • High NBFC segment investor confidence
    

Usually available in listed NCD (Non-Convertible Debenture) form, these bonds can be purchased via bond platforms or brokers.

Note: Ratings and rates are subject to change. Before making any investment, always confirm from reliable sources.

How to Make High Yield Corporate Bond Investments

• Online bond sites: GoldenPi, Bonds India, Wint Wealth allow Indian investors to purchase these bonds.
  
• Stock brokers: HDFC Securities, Zerodha, ICICI Direct
  
• Banks and NBFCs: During fresh bond or NCD issuing
  
• Demat Account: Designed for storing listed bonds
  

Usually, depending on the bond, the minimum investment starts at ₹10,000 or ₹1 lakh.

Items to Review Prior to Making Investments

• Higher yield but also more risk comes from credit rating AA and below.
  
• Check company history and financial strength to assess issuer reputation.
  
• Search for bonds with an 8% or higher coupon rate.
  
• Monthly, quarterly, or yearly choices for payouts.
  
• Liquidity: Verify your ability to sell should you need money before maturity.
  

The high yield corporate bonds list can be confusing, so it’s important to do your homework.

Last Thoughts

The high yield corporate bonds list offers good options for Indian investors who want to earn more than what FDs offer. Although there is some risk, selecting reputable issuers and well-rated companies helps to lower it. To keep safe and get better returns, always invest some of your portfolio and diversify among issuers.