Dec 2023 Business Standard
Even when investing solely for capital gains, stay flexible and extend investment horizon if required
So, money managers believe conservative investors looking for regular income could lock into some of these bonds, which come in maturities ranging from a decade to as long as half a century.
If the nomination exists, it cannot be misused in any way. “Without nominations, the accounts would get frozen necessitating the requirement of a probate.”
As I does not expect any reduction in interest rate in FY2023-24 and recommends investments in short-duration funds.
Issuance of such long-dated government securities and acceptance by the investing community indicates growing confidence in the economy of a country.
Hardly any PSU or private sector AAA-rated secured bonds offer 8 percent returns.
“These NCDs give you an opportunity to earn 50-100 basis points more than bank deposits and other AAA-rated products”.
Investors should not expect a major shift in interest rates in the near future.
Conservative fixed-income investors primarily into bank and postal deposits can consider a small allocation to the non-convertible debentures (NCDs) of Power Finance Corporation (PFC) given its government backing and AAA rating.