Bonds & NCDs
Bonds and non-convertible debentures (NCDs) pay a stated rate of interest for a fixed term and return your principal at maturity - provided the issuer honours its obligations.
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When you buy a bond or an NCD you are lending money to the issuer - the government, a public sector undertaking, a bank or a company - in return for regular interest (the coupon) and repayment on maturity. Listed bonds and NCDs trade on the stock exchanges and are held in your demat account. The key things to understand are the issuer's credit quality (shown by its credit rating), the tenure, how often interest is paid, and how easily you can sell before maturity.
What we help you access
Public issues and secondary-market bonds, explained in plain language.
- Government securities, PSU and tax-free bonds
- Rated corporate bonds and NCD public issues
- Monthly, quarterly, annual or cumulative interest options
Why it's worth it
From your first conversation to ongoing service, everything is built around your needs.
Predictable income
A stated coupon paid on a fixed schedule, if the issuer stays solvent.
Choice of tenure
Maturities from about a year to well over a decade.
Demat holding
Listed bonds and NCDs sit in your demat account alongside your shares.
Diversification
Adds a fixed-income layer alongside mutual funds and deposits.
Simple, transparent, personal
We listen first and understand completely before suggesting anything.
- 1Understand your goals, family situation, time horizon and comfort with risk
- 2Shortlist relevant options as incidental advice and explain them in plain language - costs, risks and all
- 3Take care of KYC, forms and documentation so getting started is hassle-free
- 4Review regularly and stay a phone call away whenever life changes
Frequently asked questions
Quick answers about bonds & ncds. Still have a question? We're happy to help.
What is an NCD?
A non-convertible debenture is a debt instrument issued by a company that cannot be converted into shares. It pays a fixed coupon and returns the principal on maturity.
Are bonds and NCDs safe?
They are not risk-free. If the issuer defaults, interest and principal can be delayed or lost. A higher credit rating (such as AAA) indicates lower default risk in the rating agency's opinion, but is not a guarantee.
Can I sell before maturity?
Listed bonds and NCDs can be sold on the exchange, but trading volumes are often thin, so you may not get the price you expect. Plan to hold to maturity where possible.
How is the interest taxed?
Interest is generally added to your income and taxed at your slab rate, except for specified tax-free bonds. Capital gains on sale are taxed separately. Tax rules change, so check the current position before investing.
Do I need a demat account?
For listed bonds and NCDs, yes. We help you with the account and application process.
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All our products
Investments in bonds and non-convertible debentures (NCDs) are subject to credit / default risk, interest-rate risk and liquidity risk. A credit rating is an opinion of the rating agency, not a recommendation or a guarantee of repayment. Read the offer document / information memorandum carefully before investing. Bonds and NCDs are not mutual funds and are not covered by AMFI's grievance mechanism.
Need help choosing the right option?
Talk to us - we'll understand your needs and explain your options in plain language.