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Review of Wint Wealth Senior Secured Bonds with Upto 11% Fixed Returns - Short Term Investments - YouTube
Channel: Asset Yogi
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Friends, in this video we are going to talk about Wint Wealth Senior Secure Bonds.
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All the products of Wint that have come in the last few months
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are getting subscribed very quickly in less than 1 day.
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One of their Asset was subscribed In less than 2 hours.
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So what is it about these products that is making them so popular?
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and people are even putting waitlist for it,
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That's what we're going to talk about in this video.
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To watch the latest finance videos, you can subscribe to this channel
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and press the bell icon and click on all,
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so that you will get notifications of the latest videos.
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Let us first know what is the Senior Secured Bonds
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of Wint and how they work.
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First, let's talk about Win Wealth, what is it all about?
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Wint is a platform that is raising funds for NBFCs.
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How do NBFCs raise their funds?
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whether they raise their funds through banks or through Mutual funds.
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In a way, a bank and Mutual funds become a middleperson
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between a Retail investor and an NBFC.
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Because we are putting our money in the bank,
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the bank is putting its margin, it is putting its cost,
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after that it is giving money to the NBFC.
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it will give money at a higher interest rate,
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similarly, mutual fund is also a middle man where our cost gets involved.
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If the NBFC raises money directly from Retail Investors,
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then definitely it can promise slightly higher returns to the investors,
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and also the NBFC will get the money in a little less money
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i.e. at a slightly lower interest rate as compared to the banks.
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Although NBFCs also raise some money from retail investors,
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but it is not such a popular option.
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Some NBFCs who can raise deposits, they bring their own FDs,
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in some cases, they also bring their bonds in it,
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but the ticket size in most of these bonds is very high.
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The minimum investment is 2 lakhs or 5 lakhs or 10 lakhs.
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So here Wint is playing its role,
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First of all, It is reducing the ticket size for retail investors.
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Here, investment starts with 10,000.
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and then Wint also identifies which NBFC to work with and which one not to.
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Which can be the more risky asset?
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and what are the benefits for the retail investor here?
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We get more returns than FDs.
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When we are talking about Fixed returns.
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Second, our risk becomes much less compared to the stock market.
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So in a way it becomes our better risk managed returns.
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Whenever our portfolio is ready, we put some portion in Equity, and some in Debt.
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So for the portion we have to put in Debt.
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Wint can be a good option for that,
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Let us now talk about what is Senior Secured Bond?
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First, if we talk about bonds,
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by now I think we all know that a Bond is a Fixed Income Security.
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Like under FD we get fixed interest rate
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similarly under bond also we get fixed interest rate
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Whether an NBFC is giving us,
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it is raising its funds.
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Whether it is a corporate i.e. a company is fundraising from us,
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then it will promise us a fixed interest.
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So it was about Bond.
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Now what is this secured bond?
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See, there can be two types of bonds,
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one is Unsecured and the other is Secured.
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If the company defaults in unsecured then it becomes very difficult to recover your money.
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But if there is a secured bond,
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that means the company's assets,
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it will payback your bond.
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Like when we take a home loan, our house is mortgaged,
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If we are not able to pay it, then it will be recovered by selling our house.
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similarly a secured bond,
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If we talk about Wint Wealth's Senior Secure Bonds
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So, their security is either they payback through Vehicle loans or
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Gold loans or
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Property loans.
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So in this way, the bonds are secured,
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then senior secured bond what is the seniors in it?
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Senior means that these comes under seniors most priority.
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If a company defaults, then the number one priority will be these bonds.
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That is, whatever Assets will be auctioned,
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with it, the first recovery will be of such type of bonds.
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So we understood that what are senior secured bonds.
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Now what are their benefits, why we can think of investing in them?
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So, the first reason here is that we get more returns than FDs.
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and our risk is less as compared to the stock market.
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And what is the return we can expect here,
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here we can expect our return up to 9 to 11 percent.
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And here the duration has been kept a little shorter.
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Normally you will see that the bonds are for more than 5 years,
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here they are coming with bonds of 2 to 3 years.
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Along with this, our diversification becomes very good,
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like we already talked about,
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If we talk about Regulation, it is also approved by SEBI and RBI.
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In addition, many of their bonds are also listed on the stock exchange.
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that means we can also Invest directly through our Demat accounts.
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And lastly, Risk management is very important for any investment.
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here Wint Wealth is playing more of its role.
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Let's talk about Risk in detail,
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So here are the 3 main Risks.
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The first risk in this is Credit risk.
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That is, the recovery of our principal itself becomes difficult if the NBFC defaults.
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So in such a case, what kind of risk mitigation process is implemented?
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One way here is that more security should be kept here
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then all the funds that are being raised.
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If funds up to 50 crores are being raised, then the cover pool being built
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should be 65 to 70 crores of vehicle loan or property loan.
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to make recovery easier
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Another way can be that the Payment of principal
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should be done priorly.
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See what happens in most of the bonds, your Principle
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that u get by the end of the tenure, suppose if there is a tenure of 5 years
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then after that you get the principal completely.
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The interest payment that is made is usually monthly or it can be in the end.
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So this is also a way to reduce the risk,
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which is the principal payment, we should also get it done in between.
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So here they are making amortizing bonds
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Suppose if there is a tenure of 27 months,
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then 9 months to 9 months and then 9 months your principal is paid.
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This also reduces our credit risk.
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because if we feel that this company is returning our money at regular intervals
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every periodic interval, then our risk is reducing here.
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Second is the Liquidity Risk.
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That is, can we easily sell or buy this security we have?
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See, we can buy definitely easily whenever there is a new bond issue.
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But the liquidity may still be low,
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although there are a lot of bonds getting listed on the exchange.
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Still the initial liquidity can be low
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but the way is also that we only put in as much money as we can hold.
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Suppose if we can hold ₹ 2 lakh for 27 months
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then we put only ₹ 2 lakh for 27 months, don't put more than that.
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So the risk of liquidity has also been reduced here in such a way
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that the tenure of those who used to have long tenures has been reduced.
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Then the third could be Fraud Risk.
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Now see, fraud can happen in any company,
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by definition, we have to put our checks and balances here.
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So whatever NBFCs are selecting here, the first thing these people are cherry-picking here,
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so it's being managed in that way.
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that which NBFCs have good system and processes.
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Also, they also check whether their leverage is low or high.
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The lower the debt to equity ratio, the lower will be the leverage of the company.
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That is, even if the NBFC defaults due to some reason,
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then its equity can easily be compensated for the debt.
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Debt to equity ratio also plays an important role.
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In this way, these 3 Risks are managed.
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So we have talked about the whole product of Wint in detail.
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Now let's talk about how we can invest in these.
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I have given you the link in the description below if you go to it,
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then you have to sign up first, you can enter your phone number,
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By entering the phone number, you click on Continue,
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then we enter our OTP and verify with OTP
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once you sign up you can go below,
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You see all the assets here like this, now I am doing this on the desktop,
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there is a same system on the phone too.
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You are seeing all their assets here, see this all these are their subscribed assets.
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Here this asset is going to be launched on 25th November,
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let's check out its asset details.
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As we can see there is complete detail of asset.
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it's principle repayment is every 9 month,
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The Interest payment is monthly, here we are getting pre tax returns of 10.5% for the year.
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The minimum investment is kept here of ₹ 10000, so it is a good thing for Retail Investors.
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Total asset size i.e. they are going to raise only 50 crores.
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So it is on first come first serve basis,
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So, generally the one who applies first gets it first,
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the asset maturity here is 16 February 2024.
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So here the total tenure is of 27 months.
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So our principal payment will be repay every 9 months
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You can also see here,
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that they have made a complete chart that if you invest here on the first day,
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then on the 9th month, you will get a 33% principal payment.
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66% principal will be your remaining,
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then after 9 months i.e. after 18 months 33% more principal will be repaid
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Your balance will be 33%
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and you will get the rest of your principal payment in 27 months.
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And during this time you see this is the time from !st day to nine months
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So here we should know that we will get interest on the whole amount
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and here from 9th to 18th month as much as our principal is remaining
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of 66%, we will get interest on that only
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So here we should not be confused.
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So here if we see more details,
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then look here you will get the complete brief understanding,
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you can have all the details about the bonds, though I've already explained you.
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How these assets are unique, how are they managing all the risks,
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you can read here,
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What are the risks, here we have already talked about
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Credit Risk, Liquidity Risk and Fraud Risk.
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you can also see the other summary, we have already talked about it.
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These NBFCs are raising these funds for Ugro Capitals.
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If we want to invest in this assets then we can select our unit here,
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how much lot we would like to subscribe?
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So 1 lot is of 10,000. as we subscribe in the IPO so here we can select our lots.
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Suppose we want to subscribe within three lots.
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So here there is one button called Notify me.
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Although I have already clicked this,
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then you will click on notify me then you will get notification as soon as this asset is live.
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After that, you can subscribe to it.
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Whenever an asset is live, how will we be able to invest in it?
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That too we will check here,
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You will see a button like this of Invest Now.
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Suppose I want to subscribe within two units,
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I will click on Invest now
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Once I understand all these risks very well, I will click on I Understand.
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Will go on Invest now.
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Then we can log in with any broker or wherever we have our account.
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I am currently login through Zerodha.
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So we can invest here through our Demat account.
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One thing is to be kept in mind that whatever amount we want to invest,
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that amount should be in our Demat account.
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That is, we should have that much money in the Demat and trading account.
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You can place your order here by clicking on the place button which is visible here.
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So, I hope after watching this video your understanding
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of Senior Secured Bonds have increased.
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I have given you the links in the description below If you want to invest in it.
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But still I would like you to do your due diligence yourself,
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understand all the risks
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and see whether this particular company is managing the risk well or not.
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When you are confident with yourself, only then you invest in it.
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If you liked this video then do like and share it
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with your friends and family members.
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I'm sure a lot of people still don't know about this type of product in India.
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If you have any question related to this topic then you can ask in comment section below.
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In fact, as soon as the video is published,
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I read all your questions for 1 hour and also try to reply.
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If you have not subscribed this channel yet,
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then subscribe from below and press the bell icon on your phone.
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So that you will get notifications of latest finance videos.
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See you in the next one such informative video.
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Till then keep learning, keep earning and be happy as always.
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