1 / 3

What is meant by nonconvertible debentures?

Debentures are a good investment tool for investors wanting to manage liquidity and risks while offering substantial returns. Debentures are of two types, convertible debentures and non-convertible debentures (NCD) and Non-convertible debentures (NCD).

6038
Download Presentation

What is meant by nonconvertible debentures?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. What is meant by non- convertible debentures?

  2. Debentures are a good investment tool for investors wanting to manage liquidity and risks while offering substantial returns. Debentures are of two types, convertible debentures and non-convertible debentures (NCD) and Non-convertible debentures (NCD). ●What are non-convertible debentures (NCDs)? ❖NCDs are issued by corporate organizations to raise funds from the public ❖They are quite similar to a bond ❖Are a debt investment where the money of the investor is not put into the stock market ❖NCDs have a fixed maturity date ❖They offer monthly, quarterly, half-yearly, annual and cumulative options on interest payouts.

  3. ●Why invest in NCD? ❖Good returns ✔ Secured NCDs provide a higher interest rate to their investors ❖Good liquidity ✔ Sell NCD investments on stock exchanges or exercise the Put/Call option ❖Diversification ✔ NCD Investments add diversification to your portfolio with income security ❖Better tax benefits in comparison to convertible debentures

More Related