An insight into investing in NCDs

1. An insight into investing in NCDs Non-Convertible Debenture (NCD) is a fixed-income investment option that has a predetermined interest rate and tenure. It is issued by companies as a means of raising capital. As its name suggests, NCDs cannot be into equity shares like convertible debentures. Features of NCDs NCDs are offered to the investors through an open issue, and they need to buy them within the particular offer period. Alternatively, you can also purchase them from the stock market after they are listed. Most NCDs tend to provide both interest payout and growth or cumulative options, and you would get to choose one depending on your specific financial needs. In most cases, NCDs do provide better returns than most of the traditional debt products like government bonds

2. and bank fixed deposits. The tenure of NCDs can be anywhere between two and twenty years, thereby offering good maturity opportunities. Typically, an NCD loses value in case the interest rate in the system goes up and gains if the interest rate declines. If NCDs are held till maturity, however, the investors are likely to realize the promised return and do away with the risk due to movement in interest rates. Investing in NCDs Muthoot Finance is renowned for offering the best non-convertible debentures at the lowest price in India. You can also find an NCD calculator on their website, which allows you to compare NCDs offered by varying companies, and subsequently make a smart investment decision. Muthoot Finance Ltd. is an Indian financial corporation that focuses on leading a customer-centric business that is enabled by technology and maintains the highest standards of corporate governance and uncompromising values. You can always visit the Muthoot Finance website to gain a better insight into the investment opportunities offered by the company.