Who Invests In NCDs?


Non-convertible debentures (NCDs) have gained popularity as a financial instrument that offers attractive investment opportunities. But who invests in NCDs?

In this article, we will explore the demographics of NCD investors and why they find NCDs an appealing investment option.

What is NCD?

Before delving into the profiles of NCD investors, let us briefly understand what NCDs are. NCDs are debt instruments issued by companies to raise capital from investors. These instruments offer fixed interest rates and a specific maturity period, during which the issuing company pays regular and fixed interest payments to its debenture holders. Unlike convertible debentures, NCDs cannot be converted into equity shares.

Who Can Invest in NCDs?

Investors of various backgrounds, whether they are seasoned financial experts or individuals looking to diversify their portfolio, can find value in NCDs. What makes NCDs appealing is their simplicity and predictability.

How to Apply for Muthoot FinCorp Ltd. NCDs on Muthoot FinCorp ONE Platform

Investing in NCDs has become easier with platforms like Muthoot FinCorp ONE. To apply for Muthoot FinCorp Ltd. NCDs on our website and app, follow these simple steps:

  • Log in to the Muthoot FinCorp ONE app or website.

  • Select NCD as an option.

  • Provide your email address and PAN.

  • Choose from the available NCD series.

  • Provide your DEMAT account details (linked to your PAN).

  • Provide the UPI address (VPA).

  • Click to submit your application.

Why is NCD Important

Now, let's explore why NCDs are important to investors. There are several reasons that make NCDs an attractive investment option:

  • Higher Interest Rates: NCDs typically offer higher interest rates compared to traditional fixed deposits or savings accounts, providing the potential for higher returns on investments.

  • Regular Income: NCDs offer periodic interest payouts, which can be monthly, quarterly, or annually. This feature is beneficial for those seeking a steady income stream from their investments.

  • Diversification: Investing in NCDs can diversify an investment portfolio, offering an alternative avenue to stocks, mutual funds, and traditional investment options.

  • Fixed Tenure: NCDs come with fixed tenures, allowing investors to align their investments with specific financial goals and choose the tenure that suits their requirements.

  • High Credit Rating: NCDs issued by companies like Muthoot FinCorp Ltd. often have high credit ratings, indicating the issuer's ability to meet its financial obligations.

  • Liquidity: NCDs are listed on stock exchanges, providing liquidity to investors. This means that if you need funds before the maturity of your NCD, you can sell them on the stock exchange, subject to market conditions and demand.

  • Tax Efficiency: Depending on the prevailing tax regulations in your country, NCDs may offer tax advantages, such as certain deductions or exemptions on interest income.

NCDs have emerged as a favored investment option for individuals and entities looking for higher returns, regular income, and diversification in their investment portfolios. Muthoot FinCorp ONE, with its legacy and trust, serves as a reliable platform for accessing these investment opportunities and a range of other financial services, making it a top choice for investors seeking financial growth and security.

About Muthoot FinCorp ONE

Muthoot FinCorp ONE is an all-in-one digital financial platform that makes getting an MSME & a Gold Loan, investing in Digital gold & NCDs, making payments & remittances, buying insurance & exchanging forex, simple and convenient.

As an SBU of Muthoot FinCorp Limited, Muthoot FinCorp ONE is backed by a legacy stretching back over 135 years, and the trust of more than 1 crore customers and is building a holistic financial ecosystem using the latest digital products for lending, investing, protection and payments.

Muthoot FinCorp ONE continues to uphold the values of the parent, the Muthoot Pappachan Group (Muthoot Blue) by providing its customers with easily accessible services, replete with unmistakable quality. The Muthoot Pappachan Group is among India’s most reputed names in the financial services industry, with customers in diverse segments like Automotive industry, Financial Services, Hospitality, Alternate Energy, Real Estate, and Precious Metals.

So what are you waiting for? Head to the Play Store and download the Muthoot FinCorp ONE app. You can also visit the website today to know more.

Alternatively, you can also follow us on Facebook, Instagram, Twitter or LinkedIn to stay tuned to our latest offerings.

Chat on Whatsapp | Branch Locator | Email us - customercare@muthoot.com | Download App