More liquidity | Controlled Risk | Tax Benefits
Once can either subscribe when a company (issuer) announces an NCD, or buy it from the secondary market when it is trading. But if you already have a demat account with Marwadi Financial Services, you can apply through us as well:
Similarly, you can invest in bonds with Marwadi Financial Services here.
NCDs, secured or unsecured, provide a higher interest rate to their investors, as compared to bonds.
As NCDs are listed on the stock market, they are easier to withdraw. Compared to selling regular stocks, redeeming your NCD investment may be a little tougher, but they are definitely more liquid than bank fixed deposits.
As per the provisions of Sec 193 of the IT Act, no tax is deducted at source.
NCD investments add diversification to your portfolio with considerable income security.
Bonds offer one of the most stable cash streams. Even during such times when the rates are low, there are plenty of options available that can meet your income needs. A great advantage of a strong bond portfolio is that it can provide decent yields with a lower level of volatility than equities.
Bonds are debt instruments, whereas stocks represent equity ownership. Investing in debt is relatively safer than investing in equity. Why? That’s because debtholders are given priority over shareholders in crisis situations. For instance, if a company goes bankrupt, debtholders (creditors) will be paid before the shareholders.
Bonds can help you with better risk-adjusted returns and thus diversify your portfolio. More importantly, bonds can act as an instrument to preserve capital for equity investors during times when the stock market is falling.
Capital preservation is one of the core advantages of investing in bonds. Fixed-income investments like bonds are especially useful for people who might need access to a large sum of money in the near future. For example, someone who is within five years of retirement.
Our easy-to-use HTML-based trading platform enables the analysis of any stock with 100+ study indicators and tools. The platform also provides a variety of stock screener tools to identify stocks for trade and facilitates bulk order entry. No pre-installation required. Just log in and you’re good to go!
Stocks and Equity are similar; they denote the ownership of a company. The online stock trading exchanges allow investors and traders to trade in Stocks and Equity. Stocks are securities bought and sold in the market. Equity is defined as a stake in a company.
AMC stands for an Asset Management Company that creates a pool of funds by collecting money from the public and uses the capital on various investments that involve Real Estate, Stocks, Bonds, Real Estate, etc.
Investors can generate high returns through equity investment. They can make profits through dividend earnings as well as capital appreciation.
Online share trading allows investors to trade in shares of companies on the National Stock Exchange and the Bombay Stock Exchange (BSE).