What Are NCDs?
Non-Convertible Debentures (NCDs) are fixed-income instruments issued by companies to raise funds from investors. They offer regular interest income at a fixed rate and a repayment of the principal at the end of the tenure. Unlike convertible debentures, NCDs cannot be converted into shares, which makes them purely debt instruments.
NCDs are listed on stock exchanges, giving investors the flexibility to buy or sell before maturity. They suit individuals who prefer predictable returns with moderate risk.
Key Features & Benefits
Fixed ReturnsAssured interest income throughout the investment tenure.
Higher Interest RatesOften provides better rates than bank FDs.
Credit RatingsRated by CRISIL, ICRA, CARE for transparency and safety assessment.
LiquidityListed on exchanges, allowing trading in the secondary market.
Flexible OptionsAvailable in secured and unsecured forms.
Regular PayoutsChoose monthly, quarterly, annual, or maturity payouts.
Who Should Invest?
- Investors seeking higher and steady returns than traditional bank FDs.
- Individuals with moderate risk tolerance.
- Those wanting to diversify their portfolio with fixed-income instruments.