Should traditional investors look to buy Muthoot Finance's NCDs?

With interest rates likely to remain soft in the near term, distributors believe these NCDs offering about 125-150 basis points higher returns are a good option.

Synopsis
Financial planners point out that interest rates offered by Muthoot Finance are higher than those offered by banks and corporate deposits. A fixed deposit from SBI pays upto 5.4%, while a corporate deposit from a AAA rated company returns 6- 6.5% every year.

Mumbai: Investors eyeing higher returns than traditional bank deposits, can consider the Non Convertible Debenture (NCDs) issue by gold loan financer Muthoot Finance. The company's NCDs rated ‘AA’ are available through a public offer giving returns upto7.75%. The gold financier offers two tenures of 38 months and 60 months with the option to take interest monthly, annually or on maturity. The issue price is Rs 1000 per NCD and investors can

Prashant Mahesh

ET Bureau

3 mins read

Dec 16, 2020, 10:55 PM IST

Share This Article

GIFT ARTICLE
FONT SIZE
AbcSmall
AbcMedium
AbcLarge
SAVE
COMMENT

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Monthly

₹399

No Trial Period

Yearly

(Save 49%)

₹2499

15 Days Trial +Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp.

2-Year

(Save 63%)

₹3599

15 Days Trial +Includes DocuBay and TimesPrime Membership worth ₹1499 & ₹999 resp.

Why ?

Sharp Insight-rich, Indepth stories across 20+ sectors
Access the exclusive Economic Times stories, Editorial and Expert opinion
Clean experience with
Minimal Ads
Comment & Engage with ET Prime community
Exclusive invites to Virtual Events with Industry Leaders
A trusted team of Journalists & Analysts who can best filter signal from noise