Oct 2016 Economic Times
“People, who had invested some three-four years ago, have now made profits with the benchmark yield falling sharply.”
Savvy investors are set to make a killing from DHFL’s recently-concluded non-convertible debenture (NCDs) issue. They could make an annualised return of almost 50% if the NCDs are sold on listing around mid-August.
Falling rates appear to be prompting a shift from traditional bank term deposits to alternative investment avenues including taxfree bonds and select mutual fund debt schemes.
Preference shares can be source of regular income for fixed income investors in a falling interest rate environment
Non-convertible debentures are held in demat form and hence offer many advantages over the traditional fixed deposits.