One of the best platforms for high-yield bonds.Backed by Northern Arc
- Backed by Northern Arc
- Strong Risk Management System
- Only High Yield Bonds Available
- Most bonds are Unlisted ,hence no secondary market
Overview
AltiFi is a new-age debt investment platform launched by Northern Arc Capital , a non-banking financial company for retail investors to invest in fixed-income securities . It provides these assets, which were previously solely accessible to institutional investors, retail investors, high earners, and HNIs
Altifi Business Model
AltiFi is a platform that lists the bonds and commercial papers of up-and-coming businesses across several industries. Through AltiFi, investors can earn high returns by investing in Senior Secured Bonds, Market Linked Debentures (MLD), and Commercial Papers of financial institutions, large and emerging mid-sized corporates, start-ups, and unicorns that have high standards of corporate governance. AltiFi focuses on bonds that are issued by companies that have strong credit and which the parent company Northern Arc has comfort in underwriting. The yield on bonds ranges from 8–13%. Tax-effective arrangements like MLD are also common in addition to bonds.
Type of Investment Opportunites
Invest options listed on Altifi are typically of very short, short or medium-term duration.
- Market Linked Debentures
- Corporate Debt
- Commercial Papers
Some Recent Deals Featured on Altifi
- Muthoot 11.5% IRR MLD
Muthoot Microfin Limited (MML) is an NBFC-MFI registered with the Reserve Bank of India and was established in March 2015. The entity is a subsidiary of Muthoot Fincorp Limited, part of Muthoot Pappachan Group (MPG). MML is one of the leading microfinance institutions focused on providing micro loans to women customers predominantly in rural regions of India. The business uses the Joint Liability Group (JLG) microfinance concept
- Dvara KGFS MLD 12.5% IRR
Dvara KGFS was incorporated in August 2008 by Dvara Trust with a mission to ensure and maximize the financial well-being of every individual and enterprise by providing complete access to financial services in remote rural India. Dvara KGFS works to achieve this goal by setting up a network of branches in remote rural areas that offer a range of financial products and services.The organization facilitates and originates financial products and services on behalf of financial institutions (NBFCs and Banks) through a unique branch-based business model called Kshetriya Gramin Financial Services.
- Kissht 13% NCD
Si Creva Capital Services Private Ltd is an NBFC that was incorporated in July 2015. It is a wholly owned subsidiary of On EMI Technology Solutions Pvt Ltd. Kissht is the brand name of On EMI. Kissht is a credit-led payment solutions platform by that provides consumers seamless and easy to access credit for purchases across online and offline channels. A credit IP that makes use of alternative data sets and can evaluate the creditworthiness of low-income and newly creditworthy segments in a real-time/instant process to enable the on-the-spot purchase is at the heart of the technology. All forms of credit-led purchases are supported by the Kissht platform, which is a fully digital and automated fulfilment platform. These include EMI-based loans, debit-card EMI solutions (which use the customer’s bank transaction data), and credit-card EMI solutions. The platform has Aadhar, UPI, NSDL, and credit bureaus fully integrated
- Navi 10.5% IRR NCD
NTPL was set up by the founder of Flipkart (Sachin Bansal), who, has infused 40 billion INR into various financial ventures of the group in FY20. NTPL has infused INR 1080 crore into NFPL. With this infusion, NFPL has revised its business strategy from focusing on secured 2W financing towards digital personal loans and affordable housing finance
Expected Returns
AltiFi promises a yield of 8-13% pre-tax depending on the credit quality of the paper chosen over a tenor of 2 months to 3 years.
Commercial paper would have tenor from 2 months to 9 months
Altifi Shareholder
Shareholders of AltiFi include big names like Sumitomo Mitsui Banking Corporation; one of the largest banks based in Japan, Accion Global Investments; leading impact investor based in the USA, LeapFrog Investments; Leading impact investor operating in Asia and Africa and other global and indian names in the scene like Dvara Holdings, Eight Roads, Arma Capital and IIFL.
About Northern Arc
Northern Arc (www.northernarc.com) is a financial services company primarily catering to the diverse credit requirements of under-served households and businesses by providing efficient and reliable access to debt finance.
Registered with the Reserve Bank of India as a systemically important, non-deposit taking non-banking finance company (“NBFC”), Northern Arc Capital has been operating in the financial inclusion space for over a decade, and is a leading player amongst India’s diversified NBFCs, with a business model diversified across offerings, sectors, products, geographies and borrower segments.
Frequently Asked Questions
- How to Invest on AltiFi?
- Sign up by providing basic details – Name, Phone no. And email id
- Login through phone-based OTP
- Explore products on the platform
- Complete KYC – PAN card, bank account proof, Demat account Proof
- Choose Bond/ Commercial Paper for investment
- Make payments through net banking or UPI
- Receive the securities in your demat account within T+2 business days
- Why should you Invest through AltiFi?
- Attractive returns of 8-13% on high-quality issuers
- All securities on the platform on the platform are evaluated by credit experts who specialize in that sector.
- A diverse set of products and issuers across yields and credit ratings.
- Periodic income streams and tax benefits on instruments like MLD.
- What is the minimum investment amount with AltiFi?
The minimum investment on AltiFi can be made of ₹10000.
Personal Experience of Yieldkart Team- Investing with Altifi
As with most of the investment platforms listed to Yieldkart, we make it a point to invest in these platforms as an investor. We have been investing with Altifi in multiple bonds, commercial papers and MLD. Till date, for 100% of investments, payments have been on time with 0 defaults.
To get a detailed Analysis of hundreds of investors experience read here – Portfolio Analysis
Conclusion/Final Review
Northern Arc’s Altifi seems to be a great offering. The platform offers high-yield bonds, a segment that has been mostly available only for HNI investors till now. Northern Arc has been in the business of enabling debt capital for small and mid-sized financial institutions as well as emerging corporates for over a decade now, so it is safe to say Having a large company like Northern Arc investing in the bonds and doing the risk assessment makes the offering more secure. However, it is important for the investor to do their own due diligence before investing
