Investing money is a very crucial decision to make, especially when you have so many different financial instruments to choose from. But amongst many financial instruments, NCD or non-convertible debentures offers you high interest rate of around 8.5-9.5%, and relatively less risk attached to it.
How to choose a good NCD to invest in, from amongst various other latest NCDs available in the market?
- Coupon Rate – Interest rate offered by the issuer. Consider company with higher coupon rate.
- Tenure – NCD’s usually have a maturity period of 30, 60 or 120-months. Choose the best NCD to buy, according to your financial goals.
- Credit Rating – It is the Company’s credit performance. Invest in a NCD which is secure, having a higher credit rating.
- Frequency of Payment - It is usually done on a monthly, quarterly or yearly basis. Choose the NCD which will fulfil your requirements perfectly.
- Yield to Maturity – It is the Annualised return that you earn. It helps you to determine whether buying the NCD is worthwhile or not.
NCD investment surely helps you to earn more money than FD. Invest in our upcoming NCD now!