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Lesser volatility AND higher returns?

Yes! NCDs and bonds make it possible.

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More liquidity | Controlled Risk | Tax Benefits

What are NCDs and Bonds?

A Non-convertible Debenture (NCD) is a financial instrument, in the form of a public issue, that is used by companies to raise capital for various purposes. NCDs are primarily debt instruments. They have a fixed tenure and people who invest in these receive regular interest at a certain rate. The payouts can be monthly, quarterly, or annually. On maturity, the investor (debenture holder) is paid the principal amount. Some debentures can be converted into shares after a certain period of time. However, this is not possible in the case of NCDs. That’s why they are known as non-convertible.mBonds are fixed-income securities. The investor lends money to a company or a government for a specific period of time. In return, the investor will get regular interest payments. Once the tenure is completed or the bond reaches maturity, the bond issuer (borrower) returns the investor’s money. 

Here’s how you can invest in NCDs and Bonds

Once can either subscribe when a company (issuer) announces an NCD, or buy it from the secondary market when it is trading. But if you already have a demat account with Marwadi Financial Services, you can apply through us as well:

But if you already have a demat account with Marwadi Financial Services, you can apply through us as well:
  • Step
    1

    Go to the Investment section and select the desired NCD
  • Step
    2

    Select ASBA (Applications Supported by Blocked Amount) and NCD
  • Step
    3

    Enter the NCD details and submit your application

Similarly, you can invest in bonds with Marwadi Financial Services here.

Differences between NCDs and Bonds

 

  • Security: Bonds are always secured by the collateral or physical assets of the issuer. Debentures can be either secured or unsecured. Thus you have to depend solely on the reputation of the company.
  • Tenure: Bonds are long term investments and their tenure is generally higher than debentures. Debentures can vary from short to long term investments. Comparatively, their tenure is lower than bonds.
  • The issuer: Bonds are issued by large corporations, financial institutions, and government agencies for their long term capital requirements. Private companies are the ones that generally issue debentures for their capital requirements.
  • Interest rate: Since bonds are backed by collateral, they offer a lesser interest rate as compared to debentures. The interest rate can be floating or fixed. Debentures, thus offer a higher interest rate but are less stable in terms of repayment.
  • Liquidation: Bondholders will always get priority for repayment over debenture holders in case a company goes bankrupt or is on the verge of liquidation

Awards & Recognition

Benefits of investing in NCDs and Bonds with Marwadi Financial Services

Benefits of NCDs