Why You Should Consider Non-Convertible Debentures (NCDs) for Investment in 2024

What Are Non-Convertible Debentures (NCDs)?

Non-Convertible Debentures (NCDs) are fixed-income investment instruments issued by companies to raise long-term capital. Unlike convertible debentures, NCDs cannot be converted into equity shares but offer attractive interest rates and predictable returns.

Types of NCDs

• Secured NCDs: Backed by company assets, ensuring high security.
• Unsecured NCDs: Offer higher interest rates but come with slightly elevated risk.

Why Choose NCDs as an Investment Option in 2024?

1. Attractive Interest Rates

NCDs provide higher interest rates compared to traditional savings accounts and fixed deposits.

For 2024: Expected interest rates range from 8-12%, depending on the issuer's credit rating.

Muthalagu Finance Advantage: Competitive rates to maximize your returns while ensuring security.

2. Fixed Income with Predictable Returns

Investors receive regular interest payouts, making NCDs ideal for consistent income needs.

Flexibility: Choose between quarterly, semi-annual, or annual payout options based on your requirements.

3. Low Risk with Secured NCDs

Secured NCDs are backed by company assets, minimizing default risk.

Tip: Always opt for NCDs with high credit ratings for added security.

4. Tax Efficiency

While interest on NCDs is taxable, strategic planning can optimize your tax liability.

5. Liquidity Through Stock Exchanges

NCDs can be traded on stock exchanges, allowing you to exit before maturity if needed.

Benefits of Investing in Muthalagu Finance NCDs

• High Creditworthiness: Backed by a strong financial record and high ratings.
• Flexible Tenures: Choose from 1 to 5 years based on your goals.
• Transparent Processes: No hidden charges or terms.
• Dedicated Support: Our team assists you throughout the investment journey.

How to Invest in NCDs with Muthalagu Finance

Step-by-Step Guide

1. Step 1: Understand your investment goals and tenure requirements.
2. Step 2: Review the NCD prospectus for details on interest rates, tenure, and credit rating.
3. Step 3: Apply online through our NCD Investment Page or visit a branch for assistance.
4. Step 4: Complete KYC formalities with necessary documents (PAN, Aadhaar, proof of address).
5. Step 5: Receive confirmation and track your investment online.

Who Should Invest in NCDs?

• Conservative Investors: Low-risk seekers looking for stable returns.
• Retirees: Ideal for those seeking regular income through interest payouts.
• Diversification Seekers: Add NCDs to your portfolio for balanced asset allocation.

Predictions for NCD Investments in 2024

• Increased Demand: Investors will prioritize secure instruments in uncertain markets.
• Digital Platforms: Greater adoption of online processes for ease of investment.
• Higher Returns: Issuers may offer competitive rates to attract investors.