Looking for a better option for fixed in less investment, you have a good investment opportunity this week.
Edelweiss Finance NCD
If you are looking for a better option of fixed in less investment, you have a good opportunity to invest this week. Non-banking financial company Edelweiss Finance & Investment Ltd is bringing its non-convertible debentures (NCDs). It is opening for NCD investment on Thursday, 23 January. Investors can invest in it till 31 January. NCDs have investment options ranging from 18 months to 10 years i.e. 120 months, of which 10.45 per cent will get interest annually. The company plans to raise Rs 250 crore through NCDs. Let’s see the complete details of NCD… ..
More benefit than bank FD
Edelweiss Finance & Investment Limited has 4 options for investing in NCDs. It can be invested for 1.5 years i.e. 18 months, 3 years i.e. 36 months, 5 years i.e. 60 months and 10 years i.e. 120 months. The interest is getting from 9.7 percent to 10.45 percent in different options. There is an option to charge monthly, annual and cumulative interest on these plans. Generally, most banks are paying only 6.25 per cent to 7 per cent on 5-year FDs. In this case, in this NCD, the bank FD is getting 3 percent more interest.
During the last one year, the top public and private banks in the country have cut their deposit rate by up to 50 basis points on an average. It has been reduced by more than 250 basis points since 2015. In such a situation, investment in FDs of companies is increasing. However, companies must first see the rating before investing. If the rating is good, then the risk on investment also decreases.
CRISIL: AA- / Stable
CARE: AA / Stable
How much can you invest
The face value of a NCD bond is Rs 1000 and it is necessary to invest in at least 10 bonds. That is, you have to invest a minimum of 10 thousand rupees. After this, you can invest in multiple of 1000 rupees. Edelweiss Finance is offering monthly and annual interest rate options. The listing of this NCD will be done in the stock market.