Over the years people have always seeked Bank Fixed Deposits as an way to save money and to get decent returns. Without getting into risky areas like stock.
But very few realise that they can earn better returns by investing in NCDs (i.e Non - Convertible Debentures). There are many NCD available in the market which can be bought on the exchanges. Lot of people do mistake of buying NCDs on IPO basis wherein the chances of allotment are very less, since lot of people apply directly.
You will be surprised to know that Debentures can provide you better interest than Fixed Deposits which have interest rate of dismissal 9.25-9.75%.
The yield on this debentures is around 10-12%, but one can get much highest yield upto 14-17% depending on the timing of the market.
So how to get higher yield on debentures?
Well most debentures are tradable on stock exchanges. Whenever the returns on stock increases the people tend to sell the debentures, there by reducing the cost and increasing the yield on debentures. Such debentures are worthy buy.
What are the present yield available on the debentures?
In the above table of few high yielding debentures one can also see Tata Coffee debentures being available at yield as high as 14.18% !!!
The duration here 1 is equal to one year.
Are debentures secured?
Yes as well as No. Well some debentures are secured wherein if the company fails to provide the interest or principal amount back the assets of the company will be sold to pay the bond / debenture holder.
Whereas the un secured debentures do not have company's asset as security but they have 1st right over company's asset over the shareholders.
You can always ask you Investment advisor on whether the debentures are secures or not. At the same time some debentures are rated by rating agencies like CRISIL , CARE etc. All debentures with rating above "AA" can be considered very secured.
What is the minimum amount of debentures purchasable?
Well most debentures are valued around Rs. 1000. where as few around 100 Rs. And some even as high as Rs. 1 lac per debenture. But 90% of debentures in market are available at Rs. 1000.
What is more secured? Debentures or Fixed Deposit?
Well in case of fixed deposit one cannot forget that even the bank has a chances of going bankrupt.
But one must understand that by taking debentures over fixed deposit one does take a little extra risk but at the same time earn a lot more interest.
How can I buy debentures?
Well for buying your debentures you can call your equity advisor or can call us !
But very few realise that they can earn better returns by investing in NCDs (i.e Non - Convertible Debentures). There are many NCD available in the market which can be bought on the exchanges. Lot of people do mistake of buying NCDs on IPO basis wherein the chances of allotment are very less, since lot of people apply directly.
You will be surprised to know that Debentures can provide you better interest than Fixed Deposits which have interest rate of dismissal 9.25-9.75%.
The yield on this debentures is around 10-12%, but one can get much highest yield upto 14-17% depending on the timing of the market.
So how to get higher yield on debentures?
Well most debentures are tradable on stock exchanges. Whenever the returns on stock increases the people tend to sell the debentures, there by reducing the cost and increasing the yield on debentures. Such debentures are worthy buy.
What are the present yield available on the debentures?
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| As on 11th Nov, 2011 |
The duration here 1 is equal to one year.
Are debentures secured?
Yes as well as No. Well some debentures are secured wherein if the company fails to provide the interest or principal amount back the assets of the company will be sold to pay the bond / debenture holder.
Whereas the un secured debentures do not have company's asset as security but they have 1st right over company's asset over the shareholders.
You can always ask you Investment advisor on whether the debentures are secures or not. At the same time some debentures are rated by rating agencies like CRISIL , CARE etc. All debentures with rating above "AA" can be considered very secured.
What is the minimum amount of debentures purchasable?
Well most debentures are valued around Rs. 1000. where as few around 100 Rs. And some even as high as Rs. 1 lac per debenture. But 90% of debentures in market are available at Rs. 1000.
What is more secured? Debentures or Fixed Deposit?
Well in case of fixed deposit one cannot forget that even the bank has a chances of going bankrupt.
But one must understand that by taking debentures over fixed deposit one does take a little extra risk but at the same time earn a lot more interest.
How can I buy debentures?
Well for buying your debentures you can call your equity advisor or can call us !
Work with Mr Pedro loans and see the difference in financing because they approved my loan within few days of application after been played several times online then I decided to give a try and work with Mr Pedro on refinancing my business which all went well and smooth than I expected, You can contact him on pedroloanss@gmail.com to obtain your loan at 2% rate.
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