We’re all looking to get the most out of our investments, aren’t we? So in that quest, you may be considering Fixed Deposits (FD) as a possible investment choice for your recently earned bonus or idle money in your savings account. However, the FD interest rates have been on a decline, and will not give you the best return for your money. What if we introduced you to a product that could give you a higher return than an FD, along with many more attractive benefits?
Muthoot Finance Limited will be issuing Non-Convertible Debentures (NCDs) with an interest of up to 9.00% on January 17, 2017.
What are NCDs? 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 come with a fixed tenure. Interest on NCDs can be earned monthly, quarterly, annually or cumulatively.
In the present scenario, NCDs present a better investment solution, when compared to FDs. Listed below are a few reasons why NCDs are better than FDs:
NCDs have higher liquidity. They can be traded on demand. Fixed Deposits have a lock-in period and can only be withdrawn by paying the bank a penalty.
NCDs have higher returns of 8% - 10%. Bank FDs offer returns between 5% - 7%.
NCDs come with no TDS. With Bank FDs, TDS applies for interest above Rs. 10,000.
Higher returns, higher liquidity and no tax deductions at source make NCDs a good option for your idle money.
Here are some details regarding the upcoming issue.
Issuer: Muthoot Finance Limited Type of instrument: Secured Rating: [ICRA] AA (Stable) by ICRA and CRISIL AA/Stable by CRISIL Listing: Listed on the BSE ONLY
About the company: Muthoot Finance Ltd. (MFIN) is India’s largest gold financing company in terms of loan portfolio. Promoted by Mr. M. G. George Muthoot, Mr. George Thomas Muthoot, Mr. George Jacob Muthoot and Mr. George Alexander Muthoot collectively operating under the brand name of ‘The Muthoot Group, they have diversified interests in the fields of Financial Education, Services, Foreign Exchange, Information Technology, Plantations, Real Estate, Hospitality and Healthcare.
Suitability:
Investors looking for superior earning options to bank FDs
Offer:
The minimum investment amount for the NCD is Rs. 10,000 (10 NCDs), and in multiples of Rs. 1,000 thereafter
Interest will be payable monthly or annually.
Note: This NCD is not available through the physical mode. You can only apply for it through a Demat account.
Don’t miss this opportunity to invest in Muthoot Finance Limited’s NCDs and gain higher returns!
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