Bonds, Non-Convertible Debentures (NCDs) & Fixed Deposit


A bond is a form of Debt Investment, in which an investor lends money to an entity (typically Corporate or Government) which borrows the funds for a fixed period of time at a variable or a Fixed Interest Rate. Bonds are often used by states and sovereign governments, companies to raise money and finance a various kind of projects.

Non-convertible debentures (NCDs)

Non-convertible debentures (NCDs) are a financial instrument that is used by companies to raise long-term capital. This is done through a public issue.

NCDs are a debt instrument with a fixed tenure and people who invest in these receive regular interest at a certain rate.

Why is it called non-convertible?

Some debentures can be converted into shares after a certain point in time. This is done at the discretion of the owner. However, this is not possible in the case of NCDs. That’s why they are known as non-convertible.

Fixed Deposits

FDs are one of the oldest and most common methods of investing. When it comes to assured returns, choosing the right type of savings scheme makes all the difference. Fixed Deposits let you make the most of value-added benefits as you create wealth at low risk.