Grip Invest offers a range of fixed income investment products, including corporate bonds, real estate, and lease finance-based products, aiming to provide diversification options for Indian investors.
Grip Invest focuses on providing monthly returns to investors through the concept of Internal Rate of Return (IRR), taking into account the timing and value of cash flows, offering yields ranging from 8.5% to 16%.
Deep dives
Introduction to Grib and its Mission
Grib is a platform that offers regulated fixed income investment products to Indian investors, aiming to provide diversification options at a smaller ticket size. They curate and provide predominantly fixed income products, including corporate bonds, commercial real estate, inventory financing, and lease finance-based products. The goal is to help investors build healthier portfolios with a range of products offering yields between 8.5% to 16% and tenures ranging from one month to 60 months.
Grib's Role and Regulatory Overview
Grib functions as a platform for SEBI-regulated products and is in the process of obtaining a stockbroker license for the debt segment. They operate as a platform for SEBI-regulated products, including privately placed listed rated bonds, AIFs, and other listed products. Grib provides access to products like corporate bonds, commercial real estate, inventory financing, and lease finance-based products, all of which are regulated and held in a DEMAT account.
Understanding IRR and Yield in Fixed Income Investments
Grib focuses on providing monthly returns to investors through a concept called Internal Rate of Return (IRR). IRR takes into account the timing and value of cash flows, considering that monthly or quarterly returns differ from a bullet repayment structure. The platform offers products with yields ranging from 8.5% to 16%, depending on the rating assigned by rating agencies like Crystal. Investors receive cash flows in the form of principal and interest, with taxation applied to the interest portion.
Risk, Default Rates, and Safeguards
Grib ensures that investors' capital is protected with safeguards in place. They work diligently on credit underwriting, asset management, and risk mitigation strategies to achieve zero non-performing assets (NPAs) over their 30-month history. Grib structures transactions with secured deposits, hypothecation of assets, and monthly repayment structures, reducing the probability of default significantly. However, investors should be aware that while Grib takes precautions, the investments carry a certain level of risk, and it's essential to understand the associated risks before investing.
On this episode of Paisa Vaisa, Anupam talks to Nikhil Aggarwal of Grip Invest. Talking about the importance of a diverse investment portfolio, they discuss fixed investment opportunities in today's market. Discussing the concept of IRR in comparison to CAGR, they talk about Securitized Debt Investment (SDI), Lease Financing, and much more on this episode of #PaisaVaisa!
Find Nikhil Aggarwal on social media: Twitter: (https://twitter.com/nikhila310/) LinkedIn: (https://www.linkedin.com/in/nikhil-aggarwal103/)
Get in touch with our host Anupam Gupta on social media: Twitter: (https://twitter.com/b50 ) Instagram: ( https://www.instagram.com/b_50/ ) Linkedin: (https://www.linkedin.com/in/anupam9gupta/ )
You can listen to this show and other awesome shows on the IVM Podcasts website at https://www.ivmpodcasts.com/