Bengaluru-based investment platform Wint Wealth on October 9 announced the launch of its new Securitised Debt Instruments (SDI) offerings — or what the company calls 'Wint Basket' — that enables investors to invest in multiple listed senior secured bonds with a single investment starting Rs 1 lakh.
As per SEBI regulations, the minimum face value of listed debt securities
under private placement is Rs 1 lakh.
"Since most corporate debt securities are privately placed, many investors cannot explore corporate bonds as an asset class due to the high-ticket size. Even if they purchase a few units, their portfolio has a concentration risk," said the release, further stating that Wint Basket solves this problem by offering a basket of bonds with multiple senior secured corporate bonds as underlying assets.
Therefore, investors can diversify their investment across multiple senior secured bonds by investing in a single SDI, it added.
Elaborating upon the launch, Ajinkya Kulkarni, Co-Founder and CEO of Wint Wealth, said, "Similar to equity, bond portfolios also need diversification for risk mitigation. Ideally, retail investors should allocate 5-10 percent of their portfolio to bonds to realise any meaningful gains. Retail investors must spare at least Rs 5-6 lakh to build a diversified bond portfolio. Very few retail investors can afford to do so. However, with Wint Basket, more retail investors can now consider building a well-diversified corporate debt portfolio. Thus, the market for corporate bonds will become more inclusive."
Wint Basket adheres to the stringent regulatory guidelines laid down by the Securities and Exchange Board of India (SEBI). "However, the basket still has credit, liquidity, and fraud risks depending on the underlying securities," the release from the company said.
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