Expecting More Returns? Invest In Company FDs and NCDs
Contribute in Corporate:
With bank deposits rates losing its shine, corporate fixed deposits and non convertible debentures are the best options for investments. Experts are advising investors to lock into fixed deposits and recurring deposits as soon as possible before the rates on these instruments also gets cut down.
Non convertible debentures can be an alternative if the corporate fixed deposits are not yielding expected results. Investing in NCDs increases the possibility of getting capital and offers to sell those instruments making profit.
Check for The Credit Quality: The Credit quality of the issuer is an important aspect for both the FD and NCD instruments. Some companies carry much higher degree of risks in terms of investments instead of like banks which offer highest degree safety. If you are investing in corporate companies check for the financial background of the company is financially strong. You can invest safely if you are convinced by the issuing company’s financial status.
It would be a good start if you invest in the well known companies rather than the newer ones. Make sure that the companies, their financial models and business is strong enough to face the crisis if any so as to reduce the risk of losing your hopes.
