BondControl
New Thinking. New Bond.
The problem BondControl solves
Our idea aims to solve problems for retail investors and corporations in the bond markets.
For the corporates:
Taking a business loan is very expensive (interest ranges from 14 to 18%). On the other hand, raising funds by issuing bonds is a cost effective option.
For retail investors:
There is a relatively less participation by retail investors in the bond markets. The liquidity is also low.
Investing in bond markets is lucrative as compared to other investment options. Investments in fixed deposits provide an annual interest rate of around 4 to 6% (pre-tax). Equity markets are a risky and volatile investment option due to the current geopolitical situation.
Comparatively, bond markets offer fixed and steady returns (higher interest as compared to FDs) and are less risky and volatile (when compared to equity markets). An additional advantage is that you can avail a loan of around 60% of the value of the bond. After researching a lot into a diversity of topics we found BONDS as a suitable asset class.
Challenges we ran into
Challenges we ran into was discovering an idea, which would be viable to cater to a large customer base whose primary focus is safety of investment as well as good periodic returns for themselves and their families and the upcoming generations. Finding statistical data to support our research that penetration of retail investors in the bond markets is limited was another challenge we faced.
Technologies used