An insight into investing in NCDs Non-Convertible Debenture (NCD) is a fixed-income investment option that has a predetermined interest rate and tenure. It is issued by companies as a means of raising capital. As its name suggests, NCDs cannot be into equity shares like convertible debentures.
Features of NCDs NCDs are offered to the investors through an open issue, and they need to buy them within the particular offer period. Alternatively, you can also purchase them from the stock market after they are listed. Most NCDs tend to provide both interest payout and growth or cumulative options, and you would get to choose one depending on your specific financial needs. In most cases, NCDs do provide better returns than most of the traditional debt products like government bonds