Apart from Government the other major issuer of bonds are corporates. Corporate bonds or Debentures make up a large portion of the overall Debt market.  Debentures offer higher yields than government securities because there is a higher risk. Debentures are both convertible and Non-convertible.

Non-convertible debentures or NCDs can’t be converted into stocks, unlike convertible debentures.

Like bonds, every NCD is issued with for a fixed tenure and during this, the company pays a fixed interest. 

There are several reasons for investing in NCDs.

Secured NCDs are 100% secured by assets of the company. Plus, they are rated by credit agencies.

If you are currently putting huge chunk of money in bank deposits, consider NCD as they offer competitive returns.

You can invest in NCDs from multiple sectors and diversify your portfolio.

They offer multiple payout options with regular payout as well as cumulative payout. (Monthly, quarterly, annually)

Because NCDs are traded on both NSE and BSE, they have higher liquidity and offer a convenient premature exit option.

And there is no upfront Tax.  If you are looking for safe yet smart options to park your wealth, consider investing in high rated NCDs.

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Investment in securities market are subject to market risks, read all the related documents carefully before investing

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