New Delhi, Oct. 13 -- Non-Convertible Debentures (NCDs) are fixed-income instruments issued by companies to raise long-term funds. They offer investors consistent interest payouts, with the principal repaid at maturity. Unlike convertible debentures, NCDs cannot be converted into company shares.

These instruments are lucrative for investors seeking predictable, stress-free returns, higher yields than traditional bank deposits, and opportunities for portfolio diversification.

NCDs come with several key features. Some of them are briefly discussed below:

NCDs generally offer investors higher interest rates compared to bank fixed deposits. NCDs also provide investors with customisable tenure and payout frequency, and ensure liquidity thro...