For investors seeking fixed and predictable returns, Non-Convertible Debentures (NCDs) and Corporate Fixed Deposits (FDs) offer an excellent opportunity. These investment options provide higher interest rates compared to traditional bank FDs, making them a popular choice for individuals looking for steady income and capital preservation.
What are NCDs & Corporate FDs?
- NCDs are debt instruments issued by companies to raise funds, offering fixed interest payouts over a specified period. They cannot be converted into equity shares.
- Corporate FDs are time deposits offered by companies that function similarly to bank FDs but usually provide higher interest rates.
Types of NCDs & Corporate FDs
- Secured NCDs :Backed by company assets, ensuring better security.
- Unsecured NCDs :Not backed by collateral but offer higher interest rates.
- Cumulative Corporate FDs :Interest is compounded and paid at maturity.
- Non-Cumulative Corporate FDs :Interest is paid out monthly, quarterly, or annually.
Key Features of NCDs & Corporate FDs :
- Higher Interest Rates :Typically offer better returns compared to bank fixed deposits.
- Fixed & Predictable Returns :Investors receive assured interest payouts at fixed intervals.
- Varied Tenure Options :Flexible investment periods ranging from a few months to several years.
- Liquidity & Tradability :NCDs are listed on stock exchanges, allowing investors to sell them before maturity.
- Credit Rating & Safety :Rated by agencies like CRISIL, ICRA, and CARE, helping investors assess risk.
- Diversification Benefit :Investing in NCDs and corporate FDs adds stability to an investment portfolio.
Explore the best NCDs and corporate FD options to maximize your returns with safety and stability. Our team helps you choose the right investment based on your financial goals.