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Fixed Income

Fixed income investments are good way to diversify your portfolio and are a great asset class for risk averse investors. Investments in fixed income products help you generate regular income in the form of interest, which products the investors from bank interest rate fluctuations.

We offer Fixed income products such as:

  • Corporate Fixed Deposits
  • Non- Convertible Debentures (NCDs)
  • Market Link Debentures
  • Bonds

Corporate Fixed Deposits:

Corporate fixed deposits are similar to Fixed Deposits but unlike banks these deposits are made in financial institutions known as non banking financial companies (NBFC) for a fixed period of time at a pre determined rate of interest. Corporate Fixed Deposits are best suited for individuals who want to earn fixed return on investments but do not invest in risky asset classes such as stocks/golds/commodities. Corporate fixed deposits are governed under the companies Act Section 58A.

  • Bajaj Finance
  • Shriram Transport Finance
  • ICICI Home Finance
  • PNB Housing Finance

Non – Convertible Debentures (NCDs):

Debentures are long term financial instruments issued by companies for specified period at a fixed interest rate to the investor and offering investors multiple interest payout option to choose from.  Interest rates are decided by the company who is look to raise funds via this instrument. NCDs are for investors who are looking for fixed and high interest rate for a specific period of time.

NCD can be held by individuals, banking companies, corporate bodies registered or incorporated in India and unincorporated bodies.

  • Corporate Fixed Deposits
  • Non- Convertible Debentures (NCDs)
  • Market Link Debentures
  • Bonds

Tax implications on NCD

  1. Interest earned through NCDs held until maturity is taxed at your marginal income tax rate.
  2. If you sell before the maturity period on stock exchange you will have to pay short term capital gains at income tax applicable to you.
  3. If enchased after one year but before its maturity, you will have to pay long term capital gains tax at applicable rates.

Bonds

Bonds are debt security issued by company, financial institutions, governments which offer regular or fixed payment of interest.

At Perpetual Wealth Management, we offer following types of bonds:

  • Corporate Bonds
  • Tax free bonds
  • 54EC Bonds
  • Sovereign Gold Bonds
  • Tax Saving Bonds
  • Government Bonds
  • Floating Interest Bond

Why invest in Bonds:

  • Regular income stream
  • Low market volatility
  • Safety
  • Portfolio Diversification
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