Steady Growth, Minimal Risk: Exploring Non-Convertible Debentures

Secure Investments Backed by Assets: Private Placed Secured NCDs.

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What are Non-Convertible Debentures (NCDs)?

A Non-Convertible Debenture (NCD) is a type of debt instrument issued by corporations to raise capital. Unlike convertible debentures, NCDs cannot be converted into equity shares, making them a fixed-income investment. Investors who purchase NCDs receive regular interest payments at a predetermined rate and get their principal amount back upon maturity. NCDs are typically considered a low-risk investment, and their interest rates may vary based on factors such as the issuing company's credit rating and prevailing market conditions. Investors often find NCDs attractive for their fixed returns and stability compared to more volatile equity investments.

Why choose NCD as an investment option?


Fixed Interest Rates


Interest Payout Options


Appeal for Stability


Convertible debentures can be converted into equity shares, whereas NCDs cannot be converted, making them a fixed-income investment with regular interest payments and principal repayment upon maturity.

Interest rates on NCDs are typically fixed and may vary based on the issuing company's credit rating. Market conditions, the issuer's financial health, and the prevailing interest rate environment can influence the rates offered on NCDs.

Interest income from NCDs is generally taxable. However, certain tax-saving NCDs may offer exemptions or deductions. It's essential for investors to understand the tax implications and consider their tax strategy when investing in NCDs.