A platform whose assets are getting fully subscribed in a day. Some of the listed assets getting sold out in 2 hours, and Wint Wealth is making headlines in India’s finance industry.
But, what is Wint Wealth, How does it work?
Why is it so hyped, and does it really give good returns?
I used the Wint platform to find answers to all of these questions.
Let’s get started with the A to Z of the platform and whether it is worth your time and money or not.
What Is Wint?
Wint Wealth is a platform for raising funds for the NBFCs (Non-Banking Financial Companies). It provides a list of assets to its users and offers a good fixed return on their investments.
Wint wealth offers senior secured bonds from different companies directly to the user.
But, why exactly do you need to use Wint to invest in these bonds?
Let’s find out.
Generally, retail investors cannot invest in these bonds as their ticket size is very high. It starts at around Rs.10,00,000 which is not feasible for these retail investors.
The second alternative for investing in them is through the banks and mutual funds. These financial instruments take the funds from the retail investors, add their margins, and costs and then invest them in these bonds.
The problem with this process is that the interest rate received by the investor is often low. This happens because the banks keep their share of profits as well.
Wint aims to tackle all such concerns by letting the retail investors directly invest in these bonds. As per the new regulations, investors can now make a minimum investment of Rs.10,000 in these bonds.
Through Wint, you can now directly invest in these bonds without the interference of any bank or mutual fund. This gives a higher rate of return to the investors.
What Are Wint’s Senior Secured Bonds?
Before jumping onto Senior Secured Bonds, it is important to understand each of its terms. To begin with, a bond is fixed-income security. In the language of finance, a bond is a security where the issuer has a debt to the holder of the bond. The issuer is obliged to repay the principal amount of the bond at its maturity and the interest over a period of time.
Now, there are two types of Bonds, i.e. Unsecured bonds and Secured Bonds. An Unsecured bond simply means a bond that has no security involved in the contract. If the company wraps up its operations, then there is a very minimal chance of recovering your principal sum from the company.
A secured bond is one that is backed by sufficient securities. So, if the company winds up, you have a higher chance of getting back your principal amount.
Finally, the senior secured bonds mean that in the events of the company’s closure, the senior-most secured bondholders will be the first ones to receive their investments. Wint wealth’s Senior Secured Bond is based on this model only.
Features Of Wint Wealth
There are many features coming on the table with Wint’s Senior Secured Bonds. Let’s have a look at all of them in detail.
1. Low ticket Size
Unlike other bond investments, where there is a very high ticket size, Wint offers the retail investors to participate in these fixed income securities for as low as Rs.10,000. So, you don’t have to invest a hefty sum in these securities and can start with a very low amount to make some handsome returns.
2. Good & Safe Investments On The Platform
Investors are generally scared to invest in anything directly as there are many scams happening in the finance sector. To tackle this, Wint filters out the best companies and only provides the safest option to the investors.
3. Better Returns Than FDs
People are getting sick of the continuous decrease in the returns of Fixed deposits, and Wint gives just the perfect solution to this. Being a safe and secured fixed-income security, a Senior secured bond is similar to FDs in nature. However, they provide around 9% to 11% of returns, which is much more than FDs.
4. Lower Risk Than Stock Markets
Wint Wealth’s senior secured bonds are nowhere near the amount of risk possessed by the stock markets. If your risk appetite is low or you are someone who doesn’t want to lose their principal amount, Wint’s investment instruments can be the best bet for you.
5. A Diverse Investment Opportunity
As people aim to diversify their portfolio options, Wint offers a good opportunity in this domain. You can easily make your investments in equity and debt, as these bonds let you directly invest in secured and safe debts.
Benefits Of Wint Wealth
1. Good Returns
Wint Wealth offers around 9% to 11% returns on their Senior Secured Bonds, which is a very good return considering that it is a fixed return security.
2. Less duration
Unlike other FDs and bonds that offer returns to the long-term game, i.e., around 5 years, these bonds offered by Wint Wealth give this return in a mere 2 years time period.
If you are into investments, then you definitely must be aware of the fact that you need to diversify your portfolio. This diversity gives you protection against sudden stock market crashes. With Senior Secured Bonds, you can easily diversify your portfolio by investing in debts that offer fixed returns.
4. Fully Regulated
A major advantage of investing in Wint Wealth is its regulations. It is regulated by SEBI & RBI, which gives a sense of security and protection to the investors. So, you can definitely trust Wint with your investments.
5. Listed On Stock Markets
Many of the bonds present for investments on Wint’s platform are listed on the stock market. This gives a lot of liquidity to these instruments.
With any investment, comes a lot of risk on the table. Let us have a look at the risks involved in Wint Wealth’s platform.
1. Credit Risk
A lot of times, the investors are scared that their investments might get to zero if the start-up winds up. In many cases, the unsecured bonds have landed these investors in huge losses. Wint Wealth removes this risk by letting only those companies on their platforms that have excess security pools cover their raised funds.
You can even go for Amortizing bonds, under which you can easily retrieve your principal amount in installments in a specific period of time.
2. Liquidity Risk
Although you can buy these bonds whenever they are available, you might face issues when you want to sell them. This is because these bonds don’t have much liquidity at times, even when it are listed on the stock exchanges.
The best way to deal with it is to invest only that amount that you can hold for a period of time. Wint assists in this by providing good returns in a short period of two years or even one year. Through this, the investors don’t have to wait for earning their interests and the principal amount.
3. Fraud Risk
No one knows when fraud can happen to someone. There have been many instances when people have been conned of lakhs of capital. Similarly, people are not 100% confident in these bonds.
Wint offers the full safety of these bonds through different practices. First of all, any and all the bonds are cherry-picked by them. Wint only brings those companies that have low leverage.
A Low leverage company means that it has a low debt-to-equity ratio. This means that when the company ends its operations, it will be able to pay off the debts through its equity.
How To Invest In Senior Secured Bonds of Wint Wealth
As you sign up and verify yourself through the KYC process, you’ll come across this dashboard screen. Here you can navigate and have a look at all of your investments.
To buy a bond, click on the “Assets” tab, which will take you to this screen. You will find all the listed assets of Wint Wealth on this tab. As you can see the assets visible in the image, are already sold out. However, you can still have a look at their details.
As you click on the “See Asset Details”, you’ll come across this tab where you can see all the details of the asset. It shows the type of interest payment, principal repayment, minimum investment to acquire, and the issue size of the bond.
You can click on the “Invest Now” tab if you are ready to buy the asset.
Now, you will be directed to this screen where you can select your investment lot and see the returns you’ll be making through them. After selecting the number of lots, click on “Invest Now”.
You will then be taken to the payment gateway, where you can simply make the payment and acquire these assets.
Overall, Wint Wealth is a revolution in the bonds investing segment. There are many different features and benefits that make the app stand out in the market. The users even feel safe with the various safety measures and the security pools present on the platform.
However, I would highly suggest my readers completely understand these bonds first. Before taking a call, you should see whether these companies are able to manage their risks well or not. It is always advisable to completely understand the business and its working before investing your hard-earned money into it.
I hope you were able to understand everything about Wint Wealth and whether it is the ideal investment option for you or not. Drop in your comments and tell me your favorite part of this dynamic investment platform.
How Does Wint make money?
As the investors buy the senior secured bonds, they receive periodic interest on these investments. Wint Wealth charges the interest issuing companies around 1% to 1.5% of interest on all the transactions done on their platform.
Are Senior Secured Bonds safe?
Senior secured bonds are the safest bonds in this segment. Apart from offering secured security, they offer the principal amount back to the investors first and foremost as a recovery sum in the events of the winding up of the company.
Is Wint Wealth safe?
The company is regulated by both the RBI and SEBI. This means that there is no chance of a scam or something illegal being done on it.
What is the minimum amount to start investing with Wint Wealth?
With a ticket size of a very small amount, users can invest as low as Rs.10,000 in the assets present on Wint wealth.
Can I lose money even after having all this security in these bonds?
Yes, you can still lose your money in these assets. Don’t forget that it is also an investing instrument and there is always a risk of losing your capital in these practices.