NCDs provide interest income, but look at credit rating before investing

Muthoot Fincorp unveiled its fifth issue of secured redeemable non-convertible debenture (NCD) to raise Rs 480 crore on Thursday. This is the second issue to be announced within a week. 

Tata Capital’s NCD issue, which was launched on Monday, is already fully subscribed. 

NCDs are debt instruments that can’t be converted into equity or stocks. If you are someone who wants to get a piece of this pie, you need to choose the right one for you.

Credit rating

Mumbai-based tax expert Balwant Jain says, “Of all the parameters one should look into, credit rating is paramount.” After all, the