Bonds and Non-convertible debentures (NCDs) are long-term financial instruments, issued by corporates to raise funds through public issue or private placement. They acknowledge a debt obligation towards the issuer and usually come with a fixed tenure. Interest on NCDs can be earned monthly, quarterly, annually or cumulatively.

• Investment in bonds / non-convertible debentures (NCD) are offered in both primary and secondary markets
• Investment in bonds and NCD offer a good opportunity to investors to earn regular income and diversify the investment portfolio.
• NCDs have higher liquidity as they can be traded on demand. Interest rates of bonds/NCDs are also a lot more stable and the issuer pays an interest “coupon” at pre-determined intervals.
• Bonds are given a rating or grade that indicates their credit quality. This measures a bond issuer’s ability to repay the invested capital and interest on time.
• The value of a bond is susceptible to change due to fluctuations of  interest rate.
• NCDs in demat form come with no TDS.
• Diversification of investment in bonds from different issuers can lower investment risk.