4 fixed instrument debt ideas for super returns

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Here are four debt ideas with yields that can be as high as 12 per cent from some of these instruments. We have selected a mix of NCDs, company fixed deposit and bank fixed deposit.

High yield NCD

The Shriram City Union Non Convertible Debentures (NCDs) N3 series offer a coupon rate of 12.1 per cent. The Bonds are currently traded on the NSE at Rs 1022. If you buy these bonds at this rate your yield to maturity works out to 11.02 per cent. Interest is paid annually in April every year and the NCDs will mature on August 25, 2016. The yield on these NCDs are much higher than bank fixed deposits.

Yields above 12 per cent

The India Infoline Finance N4 series NCD offer a coupon rate of 11.90 per cent. Interest is paid on April 1 every year. The Bonds are currently quoting at Rs 991 on the NSE, taking your yield to maturity to 12.49 per cent. The Bonds expire in August 2016.

Company fixed deposit option

The DHFL Aashray is a company fixed deposit from Dewan Housing Finance. The 14 month deposit offers an interest rate of 10.50 per cent with the yield going up to 10.88 per cent. This is way above bank fixed deposits. The FDs are rated CARE AA+ (FD) which indicates high investment safety.

A bank fixed deposit with high returns

A one year fixed deposit at Lakshmi Vilas Bank fetches an interest rate of 9.75 per cent, way higher than other PSU banks or private sector players. However, it may not be the strongest bank around. 

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