Non convertible debentures are issued by the company so as to raise money from public. It is for a specific tenure where the company pays a fixed interest on the investment. NCDs cannot be converted into shares. On maturity, principal amount along with interest will be paid. Agencies such as CRISIL, ICRA, CARE and Fitch Ratings give ratings to the company that raise money through NCD.
NCD can be secured or unsecured. Secured NCDs are backed by the issuer company’s assets to fulfill the debt obligation.Latest NCD's
NCD - The best debt investment option
NCDs offer better risk adjusted returns compared to other debt investment options.
NCDs can be traded in secondary market and hence offer liquidity.
The debentures are generally offered in four options: monthly, quarterly, annual and cumulative interest
TDS is not applied on interest earned on NCDs
Bonds- The Safe haven
Investment in fixed income securities counterbalances high-risk investments in a portfolio and serves to even out returns in times of volatility.
Offer consistent returns at regular intervals
Bonds offer liquidity as the bond market is huge and active
Bonds are associated with low risk when compared to other investment products
YTM (Yield to Maturity):
By investing in bonds and holding them till redemption, you can earn maximum returns in the form of regular interest plus the face value amount on maturity.