Alternatives to fixed deposits: #1 Non-convertible debentures
Saturday, May 27, 2017, 2:37 PM
Companies issue non-convertible debentures (NCDs) to raise long-term funds. These debentures cannot be converted into shares or equities and lenders offer a higher rate of return compared to convertible debentures. Non-convertible debentures are of two types —secured and non-secured. The secured ones are backed by assets, wherein if the company is unable to fulfil its obligations, the assets are liquidated to repay the investors.