WHAT IS NCD ?
Non‐Convertible Debenture is a financial instrument issued by Corporates for specified tenure to raise resources / funds through public issue or private placement. This debt instrument cannot be converted into equity. It is a fixed income instrument same as bank fixed deposit and can be traded on stock exchanges. Interest can be earned monthly / quarterly / annually / cumulative and on maturity principal amount is paid to the debenture holder.
WHY CHOOSE US..?
Rating agencies use simple alphanumeric symbols to convey credit ratings. For example, rating agencies assign credit ratings to debt obligations on three basic scales: the long‐term scale, the short-term scale, and the fixed deposit scale. AAA has the highest Credit rating by indicating the highest safety. A higher rating indicates timely servicing of debt obligations by the issuer and a lower amount of credit risk. Payback History Of Company: You must do a research and background study of the company, which is issuing the bond; after all, it is your money. Check if the company has any history of default on its payment. If so it is unwise to invest in these instruments. However, if the company has a good consistence history of repayment to its creditors then it is better to invest in the NCDs of that company. At Futurewise you get good credit-rated NCDs available in the market with our research.
Benefits Of NCD
- Higher rate of interest as compared to fixed deposits, postal savings or similar investments.
- If the bonds are listed, then one can sell them in the secondary market before their maturity.
- If the BONDs are listed then possibility of capital appreciation.
- NCDs offer a short-term investment option with relatively low risk.
- NCDs may offer tax benefits to investors, such as tax-saving bonds issued by certain government entities.