A few years ago, corporate bonds were largely the domain of institutional investors, mutual funds and wealthy individuals. Today, they are increasingly showing up on retail investors’ smartphones. Open a bond investing app and investors can browse through dozens of offerings promising annual returns of 10%, 11% or even 12% — yields that often look far more attractive than fixed deposits and, at first glance, appear less risky than equities.

That growing accessibility is helping bring more retail money into India’s corporate bond market. But the surge in participation is also raising an uncomfortable question: do investors fully understand the risks behind those double-digit returns?

“People naturally think about risk in equities or real estate,” said Dhawal Dalal, Chief Investment Officer-Fixed Income at Edelweiss Mutual Fund, in a conversation with NDTV Profit. “Very few think about risk in the bond market.”

As investors search for alternatives to fixed deposits and look to diversify beyond equities, corporate bonds are increasingly being marketed as a middle ground — offering potentially higher returns than bank deposits with less volatility than stocks. But Dalal warns that many investors are making decisions based primarily on the interest rate on offer, without paying enough attention to the quality of the borrower.

The Yield Isn’t the Whole Story

At its simplest, a corporate bond is a loan that investors extend to a company. In return, the company agrees to pay a fixed rate of interest, known as a coupon, and repay the principal at maturity. The appeal is easy to understand. A bond offering a 12% coupon can appear significantly more attractive than a bank fixed deposit yielding 6-7%.

The problem, Dalal argues, is that investors often view higher yields as an opportunity rather than a warning signal. “If a company is paying 12%, investors need to ask why it is paying 12%,” he said.

A higher coupon often reflects higher perceived risk. Companies with stronger balance sheets and stable cash flows typically borrow at lower rates, while firms facing greater business or financial risks may need to offer significantly higher returns to attract investors.

Beyond Credit Ratings

One of the biggest misconceptions among retail investors is that a credit rating is a guarantee of safety. Dalal describes ratings as third-party opinions rather than endorsements. Professional investors, he said, look beyond ratings and examine a company’s business model, leverage, cash flows, management quality and competitive position before committing capital.

“Credit rating is an opinion. It is not a certificate of creditworthiness,” he said. That distinction becomes especially important when economic conditions deteriorate or company fundamentals change unexpectedly.

Unlike equities, where risks are visible through daily price fluctuations, bond market risks often emerge more gradually. Investors face interest-rate risk, where rising rates can reduce the market value of existing bonds, and credit risk, where the issuer may struggle to repay investors. The latter remains the biggest concern.

Even highly rated borrowers can face financial stress, and history has shown that credit events can emerge unexpectedly. Cases such as IL&FS demonstrated how quickly investor confidence can evaporate when repayment concerns surface.

For retail investors buying individual bonds through digital platforms, monitoring those risks is not a one-time exercise. It requires continuous tracking of a company’s financial health and industry conditions — something many individual investors may not have the time or expertise to do.

The real question, Dalal suggests, is not whether a bond offers 10% or 12%, but whether investors understand the risks they are being compensated for.

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This week began with an end of an era — Tim Cook’s, who signed off from his final Worldwide Developers Conference on Monday. Cook had given his first keynote way back in October 2011, after taking Apple’s reins from the legendary Steve Jobs. With John Ternus stepping in his shoes soon, the event saw Cook wrapping up with Apple’s vision of AI in the future. Siri AI was introduced and Apple Intelligence was expanded, even as AI agents entered the Passwords app. The coming weeks and months should be an exciting time for Apple fans with iOS 27 in beta, before its rollout in September — when Cook rolls the dice on Ternus and bids farewell as CEO.

Leaks around the iPhone 18 Pro range — which is also set to be unveiled in September — continued to surface this week as well. While one claimed the upcoming Pro range may start $100 upwards from the last generation, another indicated that might not be the case, and Apple may absorb rising productions costs but charge for advanced AI features.

In other important news, OpenAI introduced Lockdown Mode in ChatGPT to help protect data against theft, Instagram added a long-requested Reorder Grid feature, Telegram revived Wear OS smartwatch support, and Realme launched the P4R 5G with a massive battery under the hood.

Apple Announces iOS 27 At WWDC 2026

Apple unveiled iOS 27 during its WWDC keynote, showcasing a broad range of software and AI enhancements. The update centres on an improved Siri AI, better on-device search, and refinements to Liquid Glass design. It also introduces major revisions across Apple Intelligence, parental controls, and built-in apps. READ MORE

iOS 27 Drops Cues Towards iPhone Ultra

iOS 27 also includes subtle hints suggesting that Apple is gearing up to release its first foldable iPhone. Elements such as hidden code references, fresh interface elements, and tools intended for developers indicate preparation for a foldable form. READ MORE

OpenAI’s Lockdown Mode In ChatGPT

OpenAI rolled out a Lockdown Mode for ChatGPT designed to safeguard users against prompt injection attacks and data theft. Once enabled, the mode limits certain capabilities in the chatbot to minimise network activity that can be exploited. READ MORE

iPhone 18 Pro Max Could Cost You More — Eventually

Apple is expected to keep initial pricing of the iPhone 18 Pro models steady. However, some advanced features tied to Apple Intelligence may start with free trials before shifting to subscription-based access, experts indicate. READ MORE

Reorder Grid Comes To Instagram

Instagram introduced a new tool that lets users customise the arrangement of posts on their profile grid. Users can do this by long-pressing on a post, choosing the reorder option, and dragging items into their desired positions. READ MORE

Realme P4R 5G Launched

Realme released the P4R 5G smartphone in India, featuring an impressive 8,000mAh battery. The device comes with a MediaTek Dimensity 6300 chipset, a 6.8-inch display, and includes a rear camera system led by a 50MP sensor. READ MORE

iPhone 18 Pro Max May See $100 Price Bump

Separately, a tech leaker indicated that the iPhone 18 Pro Max might carry a higher starting price of $1,299, representing a $100 increase compared to the iPhone 17 Pro Max. READ MORE

Telegram’s Smartwatch Support Is Back

After a five-year hiatus, Telegram has restored smartwatch compatibility through its newest update. The app now offers dedicated versions for both Android Wear OS and Apple Watch platforms. READ MORE

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Saving money is only the first step toward building wealth. The most important thing is making informed investment decisions and understanding the power of compounding. Sometimes, people are confused and eager to know how quickly their money can grow. That’s where the Rule of 114 comes in, offering a simple way to estimate how long it may take for an investment to triple in value.

The Rule of 114 is a widely used personal finance formula that helps investors calculate the approximate number of years required for their investment to grow threefold at a fixed annual rate of return. Based on the principles of compound interest, the rule provides a quick estimate without the need for complex financial calculations.

What Is the Rule of 114?

The formula is straightforward: 

Time to Triple (Years) = 114 ÷ Annual Rate of Return (%)

By dividing 114 by the expected annual return, investors can estimate how many years it will take for their investment to become three times its original value.

For instance, if an investor puts Rs 1 lakh into an investment earning a steady 6% annual return, the Rule of 114 suggests the corpus could grow to approximately Rs 3 lakh in around 19 years.

How It Works

At a 10% annual return, Rs 1 lakh could triple to Rs 3 lakh in about 11.4 years.

At a 12% annual return, the same amount could grow threefold in roughly 9.5 years.

At an 8% return, the tripling period would be approximately 14.25 years.

Benefits of Using the Rule of 114

The Rule of 114 is a useful tool for long-term goal setting. It can help individuals estimate the time needed to build a retirement corpus, save for a child’s education, or accumulate funds for major purchases such as a home.

The rule allows investors to compare different investment options based on their average expected returns and assess whether their financial goals are realistic.

Another advantage is its simplicity. Unlike detailed financial calculators or spreadsheets, the Rule of 114 provides a quick estimate that can be worked out mentally.

Limitations of Rule of 114

Despite its usefulness, the Rule of 114 comes with certain limitations.

Assumes constant returns over time: It assumes that investments generate a constant annual return throughout the investment period. In reality, market-linked investments such as stocks and mutual funds often vary from year to year due to market fluctuations, economic conditions, or company performance

Ignores the impact of taxes and inflation: The formula also does not account for taxes, inflation, investment costs, or changes in purchasing power. As a result, actual outcomes may differ from the estimated figures.

Not ideal for simple interest-based products: The rule is designed for investments that benefit from compound interest. It may not provide accurate results for instruments that offer simple interest.

In a nutshell, Rule of 114 offers a quick and practical way to understand the impact of compounding and estimate when an investment could potentially triple in value. While it should not replace detailed financial planning, it encourages objectivity and discipline in investing and helps individuals stay focused on long-term economic growth rather than short-term market fluctuations.

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