Wint Wealth is a fixed income destination that empowers retail investors by offering curated bonds with a yield of around 9-11%, emphasizing diversification and prioritizing liquidity.
SEBI has imposed regulations on online bond platforms like Wint to protect retail investors, introducing the concept of online bond platforms (OBPPs), reducing the minimum investment size to 1 lakh rupees, and aiming to foster growth and investor protection.
Deep dives
Wint: A Platform for Retail Investors in Fixed Income
Wint is a fixed income destination for retail investors, offering a range of fixed income products such as bonds, SGBs, FDs, and debt mutual funds. The target investor base is individuals who are saving and investing 10,000 rupees or more per month. Wint has obtained an NBFC license and has applied for a broker license and an AI license. The platform focuses on curated bonds with a yield of around 9-11% and emphasizes diversification with a minimum of 10 bonds. Liquidity is prioritized and efforts are being made to introduce a book of 20 bonds at a one lakh ticket size to increase accessibility. Tax implications correspond to the individual's marginal tax rate.
SEBI's Regulation of Online Bond Platforms
SEBI has imposed regulations on online bond platforms like Wint to protect retail investors from misselling and ensure transparency. The regulatory changes have introduced the concept of online bond platforms (OBPPs), requiring them to become regulated brokers and restrict their offerings to regulated products. SEBI has also reduced the minimum investment size to 1 lakh rupees for most listed bonds, creating a more accessible market. Bond platforms must provide necessary disclosures to investors for informed decision-making. Looking ahead, SEBI aims to further reduce the ticket size and foster serious players in the market, thus encouraging growth and investor protection.
Differentiating Between Listed and Unlisted Bonds
Listed bonds are regulated, meaning they are listed on the exchange and subject to SEBI guidelines. They offer more data and disclosures, increasing investor protection. Online bond platforms selling listed bonds are themselves regulated and must adhere to SEBI guidelines for fair marketing, data security, and more. Unlisted bonds, on the other hand, are not listed on the exchange and fall outside of SEBI's purview. They lack regulatory oversight, making it challenging to address grievances or complaints. Listed bonds generally require a minimum investment of 1 lakh rupees, while unlisted bonds may have lower ticket sizes. However, the risk associated with unlisted bonds is higher due to lack of regulation and limited data availability.
Considerations for Retail Investors and Comparison with Debt Mutual Funds
Wint caters to retail investors with short-term goals who seek to invest in fixed income instruments. The platform emphasizes diversification with a minimum of 10 bonds and a focus on yield of around 9-11%. However, factors like the higher ticket size and the need for diversification pose challenges for retail investors. Comparing Wint with debt mutual funds, Wint offers curated bonds with higher yields and greater transparency, while debt mutual funds generally provide professional fund management and greater liquidity. Wint suggests that debt mutual funds may be more suitable for portfolios requiring higher liquidity and trusting fund managers, while Wint offers opportunities for investors looking for higher returns with reasonable risk and autonomy in bond selection.
On this episode of #PaisaVaisa, Anupam sits with Ajinkya Kulkarni, CEO & Co-founder of Wint Wealth. Talking about the how Wint Wealth empowers investors, Anupam and Ajinkya talk the differences between Bonds and Debt Mutual Funds .
Discussing the latest SEBI regulations concerning online bond investments, Ajinkya shares intriguing perspectives on finfluencers and their impact on financial decision-making, opening up a thought-provoking discussion on their role in today's financial landscape.This and much more on this episode of Paisa Vaisa!