24 Jul Grip Invest launches auto compounding investment product for bond investors
Highlighting the challenges of bonds investors, Nikhil Aggarwal, founder and group CEO, Grip, said such investors had to resort to manual tracking of interest payouts and reinvestment options, where they had to make one decision after another, just to keep their capital working.
Moreover, he noted that the reinvestment journey is fragmented and inefficient, especially for smaller returns earned by retail investors, which often sit idle. This friction not only disrupts compounding but also results in silent value erosion over time. “Infinite is our response to that bottleneck: By routing monthly bond payouts into curated mutual funds via an auto-SIP… For investors, it delivers up to 30 per cent more returns from the same portfolio,” he said here. Grip Invest has more than 35,000 customers with an average age of 30-45 years.
Grip Invest has introduced Infinite, a reinvestment product designed to streamline fixed-income investments. This auto-SIP feature reinvests monthly bond payouts into curated mutual funds, potentially boosting returns by up to 30%. Grip Invest addresses the challenges of manual tracking and idle returns, particularly benefiting retail investors with smaller payouts, and aims to enhance compounding and prevent value erosion.
Aggarwal has seen an increase in interest of retails investors towards the bond market over the past few years, although there remains huge room for further expansion. He attributed the rising interest to markets regulator Sebi’s move of significantly reducing the ticket size or face value of debt securities from Rs 1 lakh to Rs 10,000 as well as recent rate cuts by the Reserve Bank of India, which made fixed deposit less appealing for investors.