In the last few years, alternative investments have become increasingly popular among Indian investors- majorly due to the rise of several fintech platforms offering them on click of a button & influencers increasing the awareness about these investment options. One of the well known & probably one of the first alternative investment platforms in India is Grip Invest. In this Grip Invest review, let us delve in depth about what Grip Invest is, various types of investment options available, pros and cons about the platforms & whether it is worth investing through the platform.
What is Grip Invest?
Grip Invest is an Indian online investment platform that allows retail investors to invest in various fixed-income products through a single platform. Started in the year 2020, it was one of the first alternative investment platforms in India offering investment options like asset leasing. However, the company has evolved over the years & Grip now operates as a SEBI-registered Online Bond Platform Provider (OBPP). Investors can access corporate bonds, securitised debt instruments (SDIs), corporate fixed deposits, debt mutual funds, and diversified bond baskets from one account.
According to the company, the platform claims to have more than 5 lakh investors with more than ₹4,400 crore worth of investments enabled till date. The platform is accessible on the web as well as mobile apps for Android & iOS.
Investment Options on Grip Invest
Corporate Bonds
Corporate bonds, in simple words, are loans given to companies in exchange for periodic interest payments. These bonds may or may not be listed on exchanges but mostly are credit-rated. Investors receive fixed coupon payments during the tenure and principal repayment on maturity. The bonds listed have a minimum investment of Rs.1000 & yields in the range 8-15% with tenures ranging from a few months to a few years.
Securitized Debt Instruments
SDIs are among Grip’s flagship investment offerings. Unlike normal corporate bonds, these investments are backed by underlying assets such as- Loan receivables, Lease rentals, Invoice receivables, etc. Grip offers different SDI categories including- LoanX, InvoiceX & LeaseX.
Corporate Fixed Deposits
Grip also provides access to corporate fixed deposits issued by Small Finance Banks & NBFCs. At the time of writing this article, they have partnered with small finance banks like Unity & Suryoday & NBFCs like Shiraram Finance & Bajaj Finserv.
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Grip Infinite
When you invest in bonds- especially the ones with monthly interest payouts, you might not always find ideal investment opportunities as per your liking to reinvest these proceeds- thus making you lose out on interest. Grip has bought a solution for this with Grip Infinite- where it automatically reinvests your bond payouts into debt mutual funds through SIPs. Grip Infinite eligible bonds will display the Infinite option on Grip. How it works is that you set up a SIP mandate for your returns to get automatically reinvested in your choice of mutual fund. Once the bond payout is credited into your account, it is automatically invested into your selected mutual fund through a SIP. This process repeats for every eligible payout until the investment matures.
Grip Bond Baskets
Do not wish to take the headache of selecting bonds to invest in? Look no further than Grip Bond Baskets. There are various baskets curated by Grip on various themes, diversification, etc. You can invest in a single click & each constituent bond of the basket reflects separately in your demat account. These bond baskets are curated by a SEBI registered Research Analyst.
Is Grip Invest Safe?
This is one of the most common questions asked by investors. The platform itself is regulated. The company- Grip Broking Private Limited is registered with SEBI as an Online Bond Platform Provider (OBPP). This takes care of the platform risk.
However, the investment product specific risks do remain. Every bond or SDI carries its own credit risk. If the issuing company fails to make payments, investors may face delays or even losses.
Hence it is ideal to research well about the options in which you invest and maintain proper asset allocation.
Grip Invest Alternatives
If you are exploring fixed-income investments mainly into bonds, you may also consider the following platforms.
- Aspero
- Altifi
- Jiraaf
- Wint Wealth
- The Fixed Income
Conclusion
Grip Invest has evolved into one of India’s popular fixed-income investment platforms. Its transition into a SEBI-regulated Online Bond Platform Provider has strengthened investor confidence and expanded its product range to include corporate bonds, SDIs, corporate FDs, etc.
However, investors should remember the standard caution that higher returns always come with higher risk. While the platform itself is regulated, the underlying investments still carry credit and liquidity risks. Before investing, carefully review the issuer, credit rating, collateral, and investment tenure.
Overall, Grip Invest can be a valuable addition to a diversified portfolio for investors seeking fixed-income opportunities beyond traditional bank deposits.
