Corporate NCDs
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Corporate NCDs
Corporate NCDs are more than just fixed-income investment products; they are a structured way to earn attractive and stable returns by lending money to well-established companies. Non-Convertible Debentures (NCDs) are issued by corporations to raise capital, and in return, investors receive regular interest payments along with the repayment of principal at maturity. For investors seeking higher returns than traditional fixed deposits with a defined risk structure, NCDs can be a valuable addition to a diversified portfolio.
Secured NCDs: Backed by the issuing company’s assets, secured NCDs offer a higher level of safety as investors have a claim on specific assets in case of default.
Unsecured NCDs: These NCDs are not backed by specific assets but generally offer higher interest rates to compensate for the higher risk involved.
Fixed Rate NCDs: Provide a predetermined interest rate throughout the tenure, ensuring stable and predictable income for investors.
Cumulative NCDs: Interest is compounded and paid at maturity along with the principal, making them suitable for long-term wealth accumulation.
Non-Cumulative NCDs: Interest is paid at regular intervals such as monthly, quarterly, or annually, providing steady income flow.
Listed NCDs: These NCDs are traded on stock exchanges, offering liquidity and the option to exit before maturity based on market conditions.
Service Outcome
- Every investor has unique income goals and risk tolerance.
- We help identify suitable Corporate NCDs that balance returns, safety, and liquidity.
- From selection to maturity, we provide complete support throughout your investment journey.
- Our solutions are designed to generate stable income while helping you diversify your investment portfolio.
1. What are Corporate NCDs?
Corporate NCDs (Non-Convertible Debentures) are fixed-income instruments issued by companies to raise funds. Investors earn regular interest and receive the principal amount at maturity.
2. Why should I invest in NCDs?
NCDs often offer higher interest rates compared to traditional fixed deposits and can be a good option for investors seeking stable and predictable returns.
3. Are Corporate NCDs safe?
The safety of NCDs depends on whether they are secured or unsecured and the credit rating of the issuing company. Higher-rated secured NCDs generally offer better safety.
4. What is the difference between listed and unlisted NCDs?
Listed NCDs can be traded on stock exchanges before maturity, providing liquidity, while unlisted NCDs are held until maturity and typically offer fixed returns over the investment period.