1.

Is Investing In Ncds Better Than Parking Funds In Corporate And Bank Fds?

Answer»

NCDs VS. Corporate fixed deposits: Yes, of course NCDs are better than COMPANY FDs. Though usually the interest RATES on NCDs and company FDs are more or less the same, what tilts the balance in favour of NCDs is the risk-return factor. Furthermore, there is also potential to earn capital appreciation from NCDs if there is a downward movement in the interest rates.

NCDs vs. BANK fixed deposits: Again, NCD is better than a bank FD because the interest differential is quite significant .

NCDs vs. Corporate fixed deposits: Yes, of course NCDs are better than company FDs. Though usually the interest rates on NCDs and company FDs are more or less the same, what tilts the balance in favour of NCDs is the risk-return factor. Furthermore, there is also potential to earn capital appreciation from NCDs if there is a downward movement in the interest rates.

NCDs vs. Bank fixed deposits: Again, NCD is better than a bank FD because the interest differential is quite significant .



Discussion

No Comment Found