10% Edelweiss Housing Finance Ltd NCD – July’16 – Should you Invest?
Edelweiss Housing Finance Ltd, a housing finance company has come out with public issue of non-convertible debentures (NCD) offering up to 10% interest rate. The issue would open on July 8 and would close on July 27, 2016.
There are 7 options of investment in Edelweiss Housing Finance Ltd NCD. The interest rates below are only for Individual investors (Category 3) as referred below.
Edelweiss Housing Finance NCD – Who can Apply?
This issue is open to all Indian residents, HUFs and Institutions.
Category I – Institutional Portion – 20% of the issue is reserved
Category II – Non-Institutional Portion – 20% of the issue is reserved
Category III – Retail Individual Investor/HUFs Portion – 60% of the issue is reserved
Why you should invest?
AA Credit rating means very less likely hood of credit default
The company is doing well in last few years with consistent rise in profits.
This is secured NCD
Why you should not invest?
There are NCDs available in secondary market which have higher yields with similar rating. The problem is low liquidity and hence is difficult to buy in large numbers.
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How to Apply?
If you have Demat account apply through ASBA facility provided by banks. It’s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work.
My recommendation is to invest some part of your Fixed Income investment in this NCD Issue
You should always have diversified portfolio be it fixed deposit, NCD or equity investment
Its good idea to remain invested till maturity because liquidity on exchanges are low and hence you would get lower than market value
If you plan to invest in this issue, do it early as most NCD issues are over-subscribed before the end date.
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Amit
Hi Readers! I am Amit, the mind behind Apnaplan.com
I am MBA from NITIE, Mumbai and BIT from Delhi University.
This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.
Hi, very informative article.
I am 28 years old and I am searching for good investment options. I just came to know about peer to peer lending as an emerging platform in India and wanted your views on that.
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Hi, very informative article.
I am 28 years old and I am searching for good investment options. I just came to know about peer to peer lending as an emerging platform in India and wanted your views on that.