What are NCDs?
Non-Convertible Debentures (NCDs) are fixed-income instruments that allow you to invest a lump sum amount in return for regular interest payouts. Unlike stocks, NCDs do not fluctuate daily based on market sentiment, offering a more stable and predictable investment option.
Why should you consider NCDs?
If you’re looking for an investment that provides fixed returns without the volatility of stocks, NCDs could be a great choice. Here’s why:
Predictable Earnings – Receive interest payouts at regular intervals (monthly, quarterly, or annually).
Secured Options – Many NCDs are backed by company assets, adding an extra layer of security.
Higher Interest Rates – Often better than traditional fixed deposits.
Flexible Tenure Choices – Choose a timeframe that suits your financial goals.
How do NCDs work?
- You invest a fixed amount in an NCD
- The issuer pays interest at the agreed rate
- At the end of the tenure, you receive your principal amount back
- Interest payouts can be structured monthly, quarterly, or annually
How to invest in NCDs on Upstox?
Go to the “More” section on the Upstox app.
Select “NCDs & Bonds” from the menu.
Choose a series based on tenure, payout frequency, and returns.
Enter the number of units you want to invest in.
Enter your UPI ID to receive the payment mandate.
Approve the mandate when prompted.
Get notified once your units are allotted.
Who should invest in NCDs?
NCDs can be beneficial for different types of investors:
For Conservative Investors: Prefer stability and assured returns without market fluctuations.
For Fixed-Income Seekers: Looking for periodic interest payouts, similar to fixed deposits but with potentially higher returns.
For Diversified Investors: Want to balance their portfolio with low-risk, fixed-income instruments alongside stocks and mutual funds.
NCDs offer a simple, structured, and predictable way to grow your wealth. Explore available NCDs on Upstox and invest today!
Start Investing in NCDs Now!