I still remember the call I got one evening from Ramesh, a senior manager at a pharmaceutical company. He had attended one of my online sessions and reached out afterward. His voice was calm but curious.
Arif, he said, I’ve been saving all my life in fixed deposits. But they hardly beat inflation anymore. I don’t want to take big risks with stocks or mutual funds. Isn’t there a middle path?
That one question sparked a conversation that lasted nearly an hour. And what came out of it was something that more and more people in India are beginning to discover a powerful investment option that combines better returns with relative safety.
I asked him, Have you ever heard of NCDs?
He paused. You mean bonds?
Close, I smiled. They’re called Non-Convertible Debentures, or NCDs. And they might be exactly what you’re looking for.
Most people have never heard of NCDs, and those who have often confuse them with complex market products. But in reality, NCDs are surprisingly simple. Here’s how I explained it to Ramesh.
When a company needs to raise money, instead of borrowing from banks, it can borrow directly from people like you and me. So they issue these debentures essentially, they’re borrowing money and promising to pay it back with interest. Unlike shares, you don’t own a part of the company. You’re just a lender. And because these are non-convertible, they don’t turn into equity later. You get fixed interest, and your principal is returned at the end of the term.
What makes this even better is something called Senior Secured NCDs. That means your money is protected by company assets—and if anything goes wrong, you’re first in line to get your money back. This adds an extra layer of security that many other investments don’t have.
Ramesh leaned in. So, you’re saying this could give better returns than an FD—and still be fairly safe?
Exactly.
Today, a typical bank FD gives you around 5–6%. Meanwhile, several NCDs are offering 9% or even more, especially from reputed companies with strong credit ratings.
But is it safe? he asked, like any good investor should.
Here’s where I told him what I tell every client: No investment is 100% risk-free. Even banks can fail, as we’ve seen in recent years. But when you choose Senior Secured NCDs from companies with good credit ratings like AA or higher the risk is significantly reduced. Plus, since these are backed by assets, they’re far more secure than unsecured options.
I also reminded him that NCDs are regulated by SEBI, and before they hit the market, they are rated by agencies like CRISIL, ICRA, and CARE. So, you have a fair sense of the risk profile before investing.
Ramesh nodded. Sounds good so far. But why isn’t this more popular?
A great question. The truth is, banks don’t promote NCDs because they want you to keep your money in FDs. That’s how they earn. And financial literacy around products like NCDs is still growing in India. But that’s changing.
People who understand the concept are starting to shift their money slowly, but surely.
So what are the real advantages?
First, the returns. With NCDs, you can potentially earn 2%–3% more than your FD. Over 5 years, that’s a huge difference.
Second, payout options. You can choose to get interest monthly, quarterly, or at maturity perfect if you’re planning for retirement income or just want regular cash flow.
Third, predictability. Unlike stock market investments that go up and down every day, NCDs are fixed-income instruments. You know exactly how much you’ll earn and when.
But I also explained the limitations to Ramesh.
You see, NCDs come with a lock-in. Your money is tied up for the term 3, 5, or sometimes even 10 years. Some are listed on exchanges, but selling them isn’t always easy, especially if there aren’t many buyers.
Also, the interest you earn is taxable, just like your FD. So while the returns are higher, your final earnings will depend on your tax bracket.
Still, when you weigh the pros and cons, NCDs make a lot of sense especially for people looking for better income and more value from their hard-earned savings.
Over the next few days, I helped Ramesh explore current NCD offers. He picked two that were secured, had strong ratings, and aligned with his goals. Today, every month, the interest quietly shows up in his account like a reward for being smart with his money.
He messaged me recently, I feel like my money is finally working for me not just sitting idle.
And that’s when I knew this story had to be told to more people.
So here’s the takeaway.
If you're someone who:
Then it’s time you seriously looked into NCDs.
Many of my clients have started including them in their portfolios whether they’re working professionals planning for goals, or retired individuals needing steady income.
And if you're not sure where to start, don’t worry. That’s exactly why I’m here.
Let’s talk about your financial goals. I’ll help you evaluate the best current NCD offers, explain the risks, and find what suits you not just what’s popular.
And here’s the best part it’s completely free.
Or if you’d prefer a quick Zoom or phone call:
📅 Book a Free Appointment Here
Don’t let your money stay lazy in low-interest FDs. Let’s put it to work—in a way that’s smart, simple, and safe.
All you need is someone who gets where you are and knows how to take you forward step by step, without pressure, and at your pace.
If you’ve made some of these mistakes or want to avoid them before they cost you, let’s talk.
✅ Message me directly on WhatsApp: Click Here to Chat
✅ Book a FREE Appointment: Click Here to Schedule
🎯 Let’s build a financial plan that actually works for you clear, simple, and stress-free.
Don’t wait for a financial shock to get serious about your money.
Take control now.
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