Retired person.
As FD rate are declining and want to invest matured FD into Monthly income generating investment.
Is SREI Equipment Finance and Kosamattam Finance Ltd NCDs good for subscription?
3 Answers
If your requirement is monthly income generation, then you can look for such NCDs. But there are risks involved in such investments.
- Even though such NCDs are called SECURED, but rating and financial health of company which offering is the point to check it. Also, the current high rating may change at any point of time. Hence, the risk of default due to bad financial health or delay in repayment is always there.
- The interest income is taxable. Also, TDS @ 10% will be deducted if these NCDs are held in physical/certificate form and annual interest income is more than Rs. 5,000. NCDs held in demat mode will not attract any TDS.
- My point is check the financial health of the company then invest. Never ever blindly go for investing simply because they offer you HIGHER monthly interest rate.
Is there any locking period for this NCDs
What if premature witdrawl of the invested amount