Among the safest instruments available, providing assured returns with lower risk in a volatile financial climate.
What Are NCDs and Bonds?
NCDs (Non-Convertible Debentures) are fixed-income securities issued by companies to raise money. Unlike convertible debentures, these cannot be converted into equity shares.
Bonds are debt instruments floated by corporations, municipalities, or governments. Investors provide funds for a specified time in return for periodic interest and return of capital at maturity.
Security
Fixed returns with lower risk
Diversification
Cushion against stock market
Steady Income
Ideal for regular cash flow
High Yield
Better rates than typical FDs
Understanding the Difference
Both are fixed income but differ in structure and risk profiles.
| Feature | NCDs | Bonds |
|---|---|---|
| Issuer | Corporations usually issue NCDs | Governments and Corporations |
| Risk Level | Moderate to High (Credit based) | Low to Moderate (Sovereign/Corp) |
| Liquidity | Medium (Depending on listing) | High (Especially Govt Bonds) |
| Returns | Fixed (Usually higher than Bonds) | Market-linked or Fixed |
| Conversion | Strictly Non-Convertible | Can include conversion options |
How to Buy NCDs Online
Demat Account
Ensure you have a demat account through a SEBI-registered broker like VSRK Capital.
Check Issue Details
Visit issuer websites or market platforms to view upcoming NCD opportunities.
Apply Online
Apply via your broker’s portal or directly through the issuer’s platform.
Allotment & Listing
Once allotted, your NCDs are credited to your demat and can be traded on exchanges.
Risk Factors to Consider
- Credit Risk: Potential loss if issuer defaults. Always check credit ratings.
- Interest Rate Risk: Prices may decline if market interest rates rise.
- Liquidity Risk: Difficulty exiting before maturity if trading volumes are low.
- Call Risk: Companies may repay debt early, affecting long-term interest earnings.
VSRK Capital offers personalized guidance for managing these risks effectively.
Why VSRK Capital?
Expert Knowledge
Deep experience in fixed-income solutions tailored to your specific requirements.
Customized Portfolio
Strategies based on your goals, risk tolerance, and time horizon.
End-to-End Support
Complete online support for applications and selection of top-performing instruments.
Ready to Secure Your Portfolio?
+91-9711404069
contact@vsrkcapital.com
Noida, Uttar Pradesh 201301
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