Retail investors get interest rate of 9.2-9.3%

Government owned and most of the top private sector banks are giving you an interest rate of 7.5%. You are getting interest rate of up to 9.3 per cent on the NCDs.

AAA rating

The NCDs can be considered as safe, given that they are AAA rated by CARE and Bricwork.

Remember, NCDs are not like bank deposits, you run the risk of a default. So, you should only invest in sound AAA rated companies.

Listing on the exchanges

One thing that investors always want is the ability to sell quickly. You can sell the Dewan Housing NCDs, as they are to be listed on the BSE and the NSE.

No TDS

Unlike bank deposits, there is no TDS. However, the interest income is subject to taxes. So, if you are in the lowest tax bracket, you would benefit from these NCDs. Still better, if you do not have taxable income.

Hedge against falling interest rates

The NCDs come with a tenure of as high as 10 years. So, you can lock money at the present high interest rates and not worry about falling interest rates.

Disclaimer

The article is not a solicitation to buy, sell in securities or other financial instruments or the NCDs mentioned in the article. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and author do not accept culpability for losses and/or damages arising based on information in this article.