What is CapitalMind Bond Desk?
It’s simple. We offer a select quantity of bonds of varying term structures of reasonably solid companies for purchase by retail investors as investments.
You can buy these bonds from us.
Buying bonds in India as a small investor is a pain. They are nowhere as liquid as stocks of the same companies, especially in small lot sizes. We offer specific quantities of a chosen set of bonds at a published price for sale on the exchange.
What’s in it for us? We make a few basis points on the spread at which we worked hard to buy those bonds and the price at which we offer them. You don’t pay anything extra. Our commission is in the price. What you should care about is: “What interest rate am I getting?” (“Kitna milega?”)
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Capitalmind is a Bangalore based investment research and wealth management firm.
Is capitalmind buying these bonds for me?
No. The CapitalMind Bond Desk has already bought them from the market and is offering them for purchase
How do I get delivery of these bonds?
On the exchange. We place Sell orders on the exchange at the published yields. Anyone (including you) can place the order through your regular demat trading account (e.g. zerodha, icicidirect etc.). So you never have to worry about not getting delivery of bonds you pay for.
Why can't I just buy these bonds on the exchange?
You absolutely can. Except a lot of these bonds do not have the liquidity to be able to get the required quantity at that price. We eliminate that uncertainty by stating available quantity and price at which you can buy up front.
What if I'm getting a better price on the exchange?
You should buy at the best price available to you. Typically these bonds see a significant Bid-Ask spread. Our price, for that volume tends to be set lower than the current lowest Ask. But there can be instances where lower Asks are available, In that case the exchange ensures your order gets filled by the lowest prices first.
How long are the prices valid for?
Prices are valid for the day they are published. If you write to us after closing hours, we will try to make them available to you the next morning, basis availability
Is there a minimum transaction size?
Yes, Buy values of at least ₹ 50,000. As we automate parts of the process, we will be able to cater to remove minimum value restrictions
Where can I understand the basics of investing in bonds?
On capitalmind.in, we write often about bonds, You can get started here: capitalmind.in/bonds/