Riya: Shyam, have you heard about this platform called ABC Wealth? My social feed, the YouTube ads are all full of people claiming you can earn 11–12% returns through “safe” debt investments! That sounds way better than my FD. Is it for real?
Shyam: (smiling) Yes, Riya. It’s real — but not risk-free. ABC Wealth doesn’t lend your money directly. It helps investors like you invest in secured debt instruments issued by NBFCs — think of it as you indirectly lending to those NBFCs, who in turn lend to others.
Riya: So I’m not lending to ABC Wealth, but through them?
Shyam: Exactly. ABC Wealth is a debt marketplace, not a borrower. It connects investors to NBFCs offering secured, asset-backed bonds — like those backed by gold loans, vehicle loans, or SME loans.
How Do They Offer 9–12%?
Shyam: Let’s take a real example from their website.
One bond listed is by XYZ Fincorp Ltd, rated AAA by CRISIL, with a coupon rate of ~10.25% and maturity in March 2027.
Another listing is Proxyz Jun’25, offering a Yield to Maturity (YTM) of around 11.75%, maturing in January 2027.
These are secured bonds — meaning they’re backed by underlying collateral like gold or vehicles. But remember, secured doesn’t mean risk-free.
Let’s Do the Math
Riya: Okay, let’s say I invest ₹10,000 in one of these. How much will I actually earn?
Shyam: Sure — here’s a quick breakdown:
Example Coupon/Yield Tenure Annual Interest Total Interest Maturity Amount
XYZ Fincorp Ltd 10.25% 2 years in year one you will get ₹1,025 and in year 2 – ₹2,050 which totals to ₹12,050
Proxyz Jun’25 11.75% 2 years, you will get ₹1,175 in year 1 and then in year 2 – ₹1,175 which totals to ₹12,350
So, on a ₹10,000 investment, you could expect between ₹2,000–₹2,350 in interest over two years, depending on the bond.
The Big BUT — These Are Not Guaranteed Returns
Riya: So, that’s guaranteed, right? I just need to hold till maturity?
Shyam: (shaking his head) Not quite. These are target returns, not guaranteed ones.
Remember, you’re lending to an NBFC — not depositing in a bank.
Here’s what could go wrong:
1. Credit Risk: If the issuer delays or defaults, interest or principal may be affected.
2. Collateral Risk: Even though it’s secured, selling collateral takes time and may not recover full value.
3. Liquidity Risk: You can’t exit early — these bonds are listed, but hardly traded.
4. Servicer Risk: The NBFC manages repayments from borrowers; if it collapses, collections can stall.
So yes — 11–12% is possible, but it comes with credit risk and default risk.
Understanding “Secured” Bonds
Shyam: Think of these as asset-backed loans.
In a gold loan pool, the gold jewelry is the collateral.
In a car loan pool, the vehicles are.
In a loan-against-property pool, real estate backs it.
Even if an NBFC defaults, the trustee can liquidate that collateral.
But recovery isn’t immediate — and sometimes, not full.
Riya: So it’s relatively safer, but not guaranteed safe.
Shyam: Exactly. That’s why ABC Wealth products are best suited for diversified investors — people who already have FDs, mutual funds, and equities — and are okay locking in 5% of their debt portfolio for higher yield.
Riya: Okay, so if I invest ₹10,000 today in that Proxyz bond, I might get around ₹12,350 after two years, provided everything goes right.
Shyam: Exactly. That’s your target return.
But if the issuer defaults, delays interest, or if collateral takes time to liquidate — your real return could drop or be delayed.
Riya: Got it. I’ll keep this as a small slice of my portfolio — not my main investment.
Shyam: Perfect, Riya. Use it to enhance returns, not replace your core debt holdings.
Takeaways for Smart Investors
What Works & What to Watch Out For
High fixed returns (10–12%) is Not guaranteed – it depends on issuer performance
Asset-backed (secured) Collateral recovery can take time
Regulated issuers (NBFCs, SEBI-listed) Still subject to credit & liquidity risk
Transparent structures Complex legal frameworks, not for beginners
Good for diversification Avoid overexposure; limit to 5% of debt portfolio
“Returns are the reward for risk — it’s never magic. Win
ABC Wealth products can offer great yields, but only if you understand what you’re signing up for.”
Make a Note :- This story is for educational purposes only. Examples like XYZ Fincorp Ltd and Proxyz Jun’25 are bonds currently listed on ABC Wealth (as of October 2025 names changed slightly).
However, returns are not guaranteed, and investors must assess credit, liquidity, and structural risks before investing.
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