In today's era, investors have multiple investment options available in the market with lots and lots of opportunity to earn a good rate of return (short- and long-term) compared to traditional plans like fixed deposits (FD). In my earlier topic, I covered detailed information about discount invoicing, where an investor can earn a good rate of return within 3 to 6 months if investments are made by understanding the technicalities, risks, and past trend analysis.
Now comes another best plan where retail investors can earn 9 to 11% return by investing money through "covered bonds". WintWealth is the platform that helps investors earn a better rate of return than FD and is less risky compared to the share market. WinWealth claims to provide a SEBI-regulated platform where investors can invest money in covered bonds, which are protected from bankruptcy.
Key Features:
Before proceeding to detailed investment steps first lets understand what are Covered Bonds ?
Covered bonds are bonds that are secured by an underlying pool of assets, also known as a cover pool. As the security created from public sector loans or mortgage loans where the security is backed by a separate group of loans. It is considered safer or less risky because before lending the funds or providing loans, sufficient collateral is taken from the borrower so that in case of any default or bad debts, the bonds are covered.
The above chart shows a clear picture of the covered bond's risk nature, which is very low as loans are covered by guarantors and issued by registered financial institutions. Also, in case of any default, there are always alternative measures to get the funds recovered via collateral.
How WintWealth Model Works ?
WintWealth can be considered as replacement for FD and Debt based Mutual Funds investments currently available in the market today !!
The latest Senior Secure bond for February 22, by the name of Slice Feb22, offered an 11.5% XIRR rate of return with a maturity of 1 year. The minimum investment amount is Rs 10,000 and the maximum is up to Rs 2 lacs per application. Interest will be paid after deducting TDS. Basically, investors will get the required details of the bond along with re-payment intervals. Repayment of interest on principal and interest will vary from bond to bond. Slice's February'22 fund re-payment criteria was 33% principal along with interest re-payment in every 3rd month from the date of investment. Repayments automatically get credited to the registered bank account.
Also, investors can see the bond details in the demat account along with other details on the WintWealth website.
Investors need to keep sufficient funds well in advance before a bond issue, as based on past years or months experience, bonds used to have 40% subscribe at the early investment stage, and investors used to be on the waitlist. Within less than a week, bonds were completely sold out. So demand is high compared to the limited supply of the bond, as the asset size used to be smaller compared to mutual funds.
Step 1: Investors needs to Login or Sign Up using Mobile OTP.
Step2: Complete the KYC process by uploading supporting documents like PAN card and Aadhar card soft copies. Demat account details also need to be shared, as investors will be able to track bond details from the demat account too, as it is backed by SEBI. Once verified, the WinWealth team will notify investors within 24 hours of document submissions.
Step3: Investors need to provide bank details, which will be used for transferring and receiving money. Amounts can be transferred via net banking and UPI modes, but only through registered bank accounts.
Step4: Investors can get the option to select the number of units they want to invest, and depending on the bond feature, there is an option to select maturity, interest rate percentage, and re-payment criteria, which are either yearly or monthly.
Kindly note: Maturity and re-payment criteria always be different for bonds
Step5: Investors also can join WAITLIST and if lucky will get early (a day) access to invest in Bonds depending upon the demand.
What are the risks involved ?
How to investment done via WintWealth ?
“I will tell you how to become rich. Close the doors, be fearful when others are greedy. Be greedy when others are fearful.” — Warren Buffett
