Apr 2024 Moneycontrol
A public issue of a good company, which is rated AA, is coming after some time. Further, other AA rated papers are offering interest rates of below 9 percent.
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”.