Non-convertible debentures (NCDs) from a number of companies — IIFL Finance, Muthoot Fincorp, Edelweiss Financial Services, Indiabulls Commercial Credit and InCred Financial Services — have hit the markets in recent times.
Why invest in them?
While the State Bank of India is offering 6.25 per cent on its five-year fixed deposit (FD), NCDs could offer you as much as 8.75-10.03 per cent over the same period.
“After the continuous repo rate hikes by the Reserve Bank of India (RBI) in the last five policy meets, investors should take advantage of the higher spreads in credit papers. Once institutional demand for