Why invest in Listed Non-Convertible Debentures?
Investors looking for alternatives to Bank and Corporate FDs who have a medium risk tolerance should consider NCDs. Ideal for those looking to generate fixed income periodically.
Advantages of investing in Listed Non-Convertible Debentures
- Minimum ticket size is usually in the comfortable range of Rs 10,000
- Higher interest rate when compared to FDs, Postal Savings Schemes or other investments of a comparable nature
- Liquidity if the bonds are listed, because it is possible to sell them on the secondary market before they mature
- If a bond is listed, there is a chance of capital growth, meaning that it might be possible to sell it for more money than it cost on the market.