New Delhi, Sept. 18 -- Bonds were once an unfamiliar investment avenue for most retail investors. The rise of online bond platform providers (OBPPs), however, has made them easier to discover, understand and access. Retail bond turnover has grown sharply, with monthly volumes now crossing Rs.2,000 crore, according to Suresh Darak, founder of FixedAlpha.com, an investment platform.

Darak discusses the changing retail bond market, the products available to investors, how bond yields are determined and why the development of the secondary market could be the next big step for retail participation.

OBPPs have played a key role in educating retail investors about bonds. Before their emergence, retail bond turnover was estimated at around Rs....