If you are planning to invest in low-risk assets and still earn the returns higher than Bank FDs. InvestoRight can help you to invest in NCD (Non-Convertible Debentures), and Bonds.
If you have high-risk equity investments portfolio and searching to counterbalance your portfolio with fixed income securities, we can help you invest in the right NCDs and Bonds.
InvestoRight offers you a platform to invest online on NCDs and Bonds, and watch your money grow.
Non-convertible debentures (NCDs): For those who are looking for the investment instrument that offers high returns with moderate risk and giving the flexibility of choosing between short and long tenures, NCDs might be the right choice.
An NCD can be secured or unsecured. Secured NCDs are backed by the issuer company’s assets to fulfil the debt obligation unlike unsecured NCDs. The NCD issues are rated by credit rating agencies like CRISIL, ICRA, FITCH, and CARE to ensure the company’s ability to service the debt on time & lower default risk.
NCD – THE BEST DEBT INVESTMENT OPTION
NCDs offer better risk adjusted returns compared to other debt Investment options.
NCDs can be traded in secondary market and hence offer liquidity.
TDS is not applied on interest earned on NCDs
Tenure of NCDs can be anywhere between 2 years and 20 years. The Interest are generally offered with four options: monthly, quarterly, annual and cumulative interest
NCDs Vs FDs
|Liquidity||Highly liquid as it’s listed on exchanges, investors can exit before maturity||Not listed on Exchanges, existing before maturity has penalty clauses|
|Safety||Backed by Company’s Assets and rated by credit agencies||Maximum Insurance of Rs. 1 Lakh only in case of Banks loses money|
|TDS||No TDS on Interest||TDS Applicable|
Most investors, regardless of age should have at least a small amount of their portfolio allocated to fixed income products like bonds. This adds safety and consistency to a portfolio.
Fixed income products such as bank/company deposits and bonds are popular with risk averse investors as they provide safety of capital with returns in the form of fixed periodic payments and the eventual return of principal at maturity.
InvestoRight offers you online platform to invest into company deposits and Bonds. We adopt a holistic approach to portfolio building to advice on all major asset classes for investments. You can trade in any bond out of the scores of corporate bonds that are traded daily on the stock exchange.