9.25% Edelweiss Retail Finance NCD – March 2018 – Should you Invest?
Edelweiss Retail Finance has come out with public issue of non-convertible debentures (NCD) offering up to 9.25% interest rate. The issue opens on March 7 and closes on March 22, 2018.
Edelweiss Retail Finance Ltd is a non-banking finance company, offering wide range of Housing Finance and other retail credit products like Housing loan, Loan against property, Construction finance, lease rental discounting, SME Finance, Equipment finance among others. They are also present in rural India providing micro finance as part of their financial inclusion agenda.
The banks have started increasing interest rates on fixed deposits and hence it may not be good idea to invest for long term (DO not go for 10 year tenure – you might get better opportunities going forward).
For people in highest tax bracket Tax free bonds are trading at yields of 6.1% to 6.3% – which would turn out to be better and more secure investment
How to Apply?
If you have Demat account apply through that or 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
In case you don’t want to do it online, you can download the application form from Financial Institutions and submit to collection centers.
Recommendation:
My recommendation is to invest some part of your Fixed Income investment in this NCD Issue (3 or 5 year tenure bonds only)
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 is 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 within few days of opening.
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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.