Bonds and 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 usually come with a fixed tenure. Interest on NCDs can be earned monthly, quarterly, annually or cumulatively.
Summary: Higher returns, higher liquidity, taxation benefits and no tax deductions at source make investment in NCDs a suitable option. If an investor is looking for superior earning options to bank Fixed Deposit, then NCD investment is a definite solution.