What is meant by non convertible debentures?

What is meant by nonconvertible debentures?

Debentures are a good investment tool for investors wanting to manage liquidity and risks while offering substantial returns. Debentures are of two types, convertible debentures and non-convertible debentures (NCD) and Non-convertible debentures (NCD). ● What are non-convertible debentures (NCDs)? ❖ NCDs are issued by corporate organizations to raise funds from the public ❖ They are quite similar to a bond ❖ Are a debt investment where the money of the investor is not put into the stock market ❖ NCDs have a fixed maturity date ❖ They offer monthly, quarterly, half-yearly, annual and cumulative options on interest payouts.

● Why invest in NCD? ❖ Good returns ✔ Secured NCDs provide a higher interest rate to their investors ❖ Good liquidity ✔ Sell NCD investments on stock exchanges or exercise the Put/Call option ❖ Diversification ✔ NCD Investments add diversification to your portfolio with income security ❖ Better tax benefits in comparison to convertible debentures