Grip Invest launches auto compounding bond investment

Nikhil Aggarwal, Founder & Group CEO, Grip Invest

Fixed-income investment platform Grip Invest has launched Infinite, a new feature that automates the reinvestment of monthly interest payouts from bonds and structured debt instruments (SDIs) into debt mutual funds.

The tool aims to simplify a common challenge faced by fixed-income investors—how to reinvest periodic returns efficiently. Instead of letting interest earnings sit idle or requiring manual action, Infinite routes payouts into select mutual funds via an automated SIP (Systematic Investment Plan).

“Bond 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,” said Nikhil Aggarwal, Founder and Group CEO, Grip Invest. The feature can be activated when purchasing a bond or via the investor’s existing portfolio. Grip said the auto-reinvestment mechanism could improve long-term returns by up to 30 percent, compared to leaving payouts uninvested.

The company currently offers more than 15 debt mutual fund options on its platform. Investments made through Infinite can be withdrawn anytime or redirected into other fixed-income products on the platform.

“By routing monthly bond payouts into curated mutual funds via an auto-SIP, Infinite offers the power of compounding on auto-pilot. It turns passive returns into active compounding, without lock-ins, delays, or constant oversight," the founder said.

Grip Invest, which is backed by investors like Venture Highway, Stride Ventures, ITI Capital and Multiply Ventures, has more than 35,000 customers with an average age of 30-45 years.

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.