Millennials Drive 63% Of Corporate Bond Investments: Report

Millennials are dominating the corporate bond investment landscape, accounting for 63 per cent of all investors, according to the report from Grip Invest. The report, unveiled by Grip Invest, a leading high-yield investment platform, highlights a major generational shift as millennials pivot from traditional savings instruments like Fixed Deposits to Corporate Bonds.

Regulatory changes, such as reducing the minimum investment commitment from Rs 10 lakh to Rs 10,000, have contributed to this surge, aligning with CRISIL's projection that India's Corporate Bond market will double by 2030 to reach Rs 100-120 lakh crore. 

On the Grip Invest platform, millennials not only constitute the majority of investors but have also increased their average investment in Corporate Bonds by 1.8 times between 2023 and 2024. This surge, combined with a 200 per cent increase in overall Corporate Bond investments, propelled Grip Invest to reach Rs 450 crore in this segment alone. Furthermore, repeat investments quadrupled in 2024, indicating growing investor confidence in this asset class.

Female participation in Corporate Bond investing also saw remarkable growth, rising by 52 per cent from 2023 to 2024. Female investors displayed a preference for the stability and balanced risk profile offered by Corporate Bonds, with a 54 per cent increase in women choosing Corporate Bonds as their first investment between Q1 and Q2 of 2024.

The report further reveals that corporate bonds are attracting interest beyond metro cities, with investments originating from over 3,000 pincodes nationwide. Interestingly, the top 10 cities contributed only 43 per cent of total investments, highlighting the widespread appeal of this investment option. Grip Invest’s portfolio shows that 71 per cent of its Corporate Bonds are rated ‘A’ or above, typically delivering returns of 12 per cent over an 18-month tenure.

“The findings from our latest report reveal a rebalancing of the financial landscape, where corporate bonds have transformed from a niche asset into a mainstream choice for everyday investors. The growing accessibility, expanding risk appetite of millennials, and demand for a digital-first experience have been key drivers of this change,” commented Nikhil Aggarwal, Founder and Group CEO, Grip on the findings.

Grip Invest introduced several industry-first initiatives, including India's first privately placed investment-grade bond with a Rs 10,000 face value, which sold out in just 36 hours.