Today, every investor is evolving with his choices; not only is he looking to invest beyond the normal realm of traditional instruments, but also diversify his investment platter.  The volatility in the markets in the past two months has caused the equity markets to lose their sheen, and the investors have turned to options with more fixed returns such as non-convertible debentures (NCDs) & FDs. 

 Why should YOU choose investing in a NCD?

• Fixed Return: NCDs provide you with fixed returns; hence even during a volatile market, an investor can remain assured of guaranteed returns.
• Rate of Return: The rate of return from a NCD is generally higher than other instruments. The current rate of return is between 8.50% -9.50% p.a.
• Ratings & Safety: Several rating agencies provide ratings for NCDs. A lower rating signifies a higher risk & vice versa – therefore NCDs with higher ratings are safer.
• Liquidity: Most of the NCDs come with a clause which allows a premature exit for the face value on the stipulated date.
• No TDS Applicable: Interest received from NCDs is not subject to TDS u/s 193 of the Income Tax Act.

 How do NCDs Score over other financial instruments?

On comparing NCDs with FDs, we found out that NCDs are gaining an edge over FDs over various aspects. Some of them are:

 Invest in EFIL NCD today!