Why NCDs Are a Stable Investment Way


Welcome to the world of investments – where every penny you put in has the potential to grow and secure your future. And what if we told you that with as little as ₹10,000, you can venture into a stable and high-yield avenue that promises fixed high returns? That's right. We at Muthoot FinCorp ONE, are here to guide you through the investments in Non-Convertible Debentures (NCDs).

Understanding NCDs: Non-Convertible Debentures, abbreviated as NCDs, are a type of debt instrument that companies issue to raise capital from investors. Unlike their convertible counterparts, NCDs do not offer the option to convert into equity shares. Instead, they provide investors with fixed interest rates and a specific maturity period, ensuring regular and fixed interest payments throughout.

Why should you consider NCDs in your investment portfolio? Here are some benefits:

1. High Returns: Muthoot FinCorp Ltd.'s NCDs offer higher interest rates compared to traditional fixed deposit schemes or savings accounts, potentially ensuring greater returns on your investment.

2. Diversification: These debentures provide an alternative investment avenue, allowing you to diversify your portfolio beyond stocks and mutual funds.

3. Fixed Tenure: With tenures ranging from months to years, you can align your investments with your financial goals and choose what suits you best.

4. Liquidity and Tax Efficiency: Listed on stock exchanges, Muthoot FinCorp Ltd.'s NCDs offer liquidity options. Additionally, they may have tax advantages depending on prevailing tax regulations.

How to Invest in NCDs via Muthoot FinCorp ONE

Investing in NCDs through the Muthoot FinCorp ONE app or website is a hassle-free process:

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

  • Select NCD Investments.

  • Provide your email address and PAN details.

  • Choose from the available NCD options.

  • Share your DEMAT account details linked to your PAN.

  • Provide the UPI address (VPA).

  • Click to submit your application.

FAQs on NCDs

Here are some common queries about NCD investments:

  • Face Value: The face value of an NCD represents its initial value or principal amount repaid to the holder at maturity.

  • KYC Requirement: Completing KYC is not necessary for investing in NCDs.

  • Minimum and Maximum Investment: You can invest with as little as ₹10,000 and up to ₹5,00,000 via UPI. Larger investments can be made at a Muthoot FinCorp branch.

  • Multiple Applications: Yes, multiple applications are possible, but each option can be applied for only once, with a cumulative maximum investment limit of ₹5,00,000.

  • Cancellation: Applications can be canceled during the open bidding window, taking up to 24 working hours for confirmation.

In a nutshell, NCDs are a stable investment option offering high returns, easy accessibility, and flexibility. With Muthoot FinCorp ONE, taking your first step into this lucrative world has never been easier. So, what are you waiting for? Begin your investment journey today and pave the way for a financially secure future.

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.

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