Guide to NCD Investment

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Guide for ncd investment
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What is ncd?

• NCD (Non-Convertible Debenture) is a financial
  instrument that can help you manage liquidity and
  risks while offering significant profits.
• The NCDs are issued by reputed companies for a
  specific period with a guarantee of a fixed
  interest to the investors.

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Questions you should ask before investing in ncd

• Are NCDs a good fit in your portfolio?
• If you want to increase the allocation in the
  debt segment, you should go for an NCD.
• What should you choose NCD or FD?
• NCDs pay you a higher return than FD. If you want
  to stay invested for a long tenure, you should go
  for an NCD.
• What type of NCD should you choose?
• You can choose between a secured and an unsecured
  NCD. A secured NCD is secured by a charge on some
  assets or a set of assets. The unsecured NCDs are
  not backed by any charge on assets.

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conclusion

• NCDs can be traded in the secondary market. But
  when it comes to liquidity, the debt market is
  not the best for individual investors.
• So, NCDs should not be bought with the aim of
  trading on interest rate cycle. They should be
  bought and held on to till maturity.

Get in touch with the stock broker you trust to
apply for an NCD.
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THANK YOU