{"id":7579,"date":"2017-01-14T08:15:50","date_gmt":"2017-01-14T02:45:50","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=7579"},"modified":"2017-01-14T08:15:50","modified_gmt":"2017-01-14T02:45:50","slug":"muthoot-finance-ncd-jan17","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/muthoot-finance-ncd-jan17\/","title":{"rendered":"9.25% Muthoot Finance NCD \u2013 Jan&#8217;17 \u2013 Should you Invest?"},"content":{"rendered":"<figure id=\"attachment_7581\" aria-describedby=\"caption-attachment-7581\" style=\"width: 300px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-7581\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest-300x174.png\" alt=\"Muthoot Finance NCD \u2013 Jan 2017 \u2013 Should you Invest\" width=\"300\" height=\"174\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest-300x174.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png 577w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><figcaption id=\"caption-attachment-7581\" class=\"wp-caption-text\"><strong>Muthoot Finance NCD \u2013 Jan 2017 \u2013 Should you Invest?<\/strong><\/figcaption><\/figure>\n<p style=\"text-align: justify;\">Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 9.25% interest rate. The issue is already open and would close on February 17, 2017.<\/p>\n<h2 style=\"text-align: justify;\">Muthoot Finance NCD \u2013 Significant Points:<\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"text-align: justify;\"><strong>Offer Period:<\/strong>\u00a0January 17 to February 17, 2017<\/li>\n<li style=\"text-align: justify;\"><strong>Annual Interest Rates<\/strong>\u00a0for Retail Investors: 8.25% to 9.25% depending on tenure<\/li>\n<li style=\"text-align: justify;\">There is also an option where the money doubles in 8\u00a0Years (96 Months) (9.06% annual interest)<\/li>\n<li style=\"text-align: justify;\"><strong>Price of each bond:<\/strong>\u00a0Rs 1,000<\/li>\n<li style=\"text-align: justify;\"><strong>Minimum Investment<\/strong>: 10 Bonds (Rs 10,000)<\/li>\n<li style=\"text-align: justify;\"><strong>Max Investment Limit<\/strong>\u00a0for Retail Investor: Rs 10 Lakhs<\/li>\n<li style=\"text-align: justify;\"><strong>Credit Rating<\/strong>\n<ul>\n<li style=\"text-align: justify;\"><strong>Secured:<\/strong>\u00a0\u2018AA (Stable)\u2019 by ICRA and \u2018AA\/Stable\u2019 by CRISIL<\/li>\n<li style=\"text-align: justify;\"><strong>Unsecured:<\/strong>\u00a0\u2018AA (Stable)\u2019 by ICRA and \u2018AA\/Stable\u2019 by CRISIL<\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: justify;\"><strong>NCD Size:<\/strong> Rs. 1,300 Crores for secured NCD and Rs 100 crore for Unsecured<\/li>\n<li style=\"text-align: justify;\"><strong>Allotment<\/strong>: First Come First Serve<\/li>\n<li style=\"text-align: justify;\"><strong>Listing:<\/strong>\u00a0Bonds would be listed on BSE and will entail capital gains tax on exit through secondary market<\/li>\n<\/ul>\n<blockquote><p><span style=\"background-color: #ffcc00;\"><strong style=\"font-style: italic;\">Also Read<\/strong><\/span><span style=\"font-style: italic;\"><span style=\"background-color: #ffcc00;\">\u00a0\u2013<\/span>\u00a0<\/span><span style=\"font-style: italic;\"><a style=\"font-weight: inherit; font-style: inherit; color: #005fa1;\" href=\"http:\/\/www.apnaplan.com\/know-ncd-investment-tips-tds-and-taxation\/\"><span style=\"font-weight: inherit; font-style: inherit;\">Know NCD \u2013 Investment Tips, TDS and Taxation<\/span><\/a><\/span><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">Muthoot Finance\u00a0NCD &#8211; Investment Options:<\/h2>\n<p style=\"text-align: justify;\">There are 11 options of investment in Muthoot Finance NCD.<\/p>\n<figure id=\"attachment_7580\" aria-describedby=\"caption-attachment-7580\" style=\"width: 757px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-January-2017-Investment-Options.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-7580 size-large\" src=\"http:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-January-2017-Investment-Options-1024x406.png\" alt=\"Muthoot Finance NCD - January 2017 - Investment Options\" width=\"757\" height=\"300\" title=\"\" srcset=\"https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-January-2017-Investment-Options-1024x406.png 1024w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-January-2017-Investment-Options-300x119.png 300w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-January-2017-Investment-Options-768x305.png 768w, https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-January-2017-Investment-Options.png 1180w\" sizes=\"(max-width: 757px) 100vw, 757px\" \/><\/a><figcaption id=\"caption-attachment-7580\" class=\"wp-caption-text\"><strong>Muthoot Finance NCD &#8211; January 2017 &#8211; Investment Options<em> (Click on Image to enlarge)<\/em><\/strong><\/figcaption><\/figure>\n<p style=\"text-align: justify;\">The first 10 options are secured while the last option which doubles the money in 96 Months is unsecured.<\/p>\n<h2 style=\"text-align: justify;\">Muthoot Finance\u00a0NCD &#8211; Who can Apply?<\/h2>\n<p style=\"text-align: justify;\">This issue is open to all Indian residents, HUFs and Institutions.<\/p>\n<ol style=\"text-align: justify;\">\n<li>Category I \u2013 Institutional Investors \u2013 20% of the issue is reserved<\/li>\n<li>Category II \u2013 Non-Institutional Investors, Corporates \u2013 10% of the issue is reserved<\/li>\n<li>Category III \u2013 Retail Individual Investors including HUFs \u2013 70% of the issue is reserved<\/li>\n<\/ol>\n<p style=\"text-align: justify;\">However NRIs cannot apply for this NCD.<\/p>\n<h2 style=\"text-align: justify;\">Why you should invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li>The NCD is secured, which means the above debt is backed by assets of the company<\/li>\n<li>Largest Gold Loan player in India<\/li>\n<li style=\"text-align: justify;\">The <a href=\"http:\/\/www.apnaplan.com\/highest-interest-rate-on-bank-fixed-deposits-fd\/\">interest rates are 2% higher than your regular Bank FDs<\/a><\/li>\n<li style=\"text-align: justify;\">No TDS if invested in Demat Form<\/li>\n<\/ol>\n<h2 style=\"text-align: justify;\">Why you should not invest?<\/h2>\n<ol style=\"text-align: justify;\">\n<li>The fortune of Gold Loan companies are dependent on Gold Prices. Any negative correction to Gold prices can be bad for company<\/li>\n<li>There has been consistent drop in profits of the company and increase in NPAs. If this continues, there might be issues in serving regular interests.<\/li>\n<li>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.<\/li>\n<li>The present <a href=\"http:\/\/www.apnaplan.com\/category\/fixed-income\/bonds\/tax-free-bond\/\">Tax Free Bonds<\/a> are offering yields up to 6.2% in secondary market, which is better investment for People in highest tax bracket.<\/li>\n<\/ol>\n<blockquote><p>Also Read:\u00a0<a href=\"http:\/\/www.apnaplan.com\/highest-interest-rate-on-recurring-deposits-rd\/\">Highest Interest Rate on Recurring Deposits<\/a><\/p><\/blockquote>\n<h2 style=\"text-align: justify;\">How to Apply?<\/h2>\n<p style=\"text-align: justify;\">You can apply online by ASBA facility provided by banks. It\u2019s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><strong>Learn:\u00a0<\/strong><a href=\"http:\/\/www.apnaplan.com\/ipo-asba\/\">How to apply for NCD issues using ASBA?<\/a><\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">In case you don&#8217;t want to do it online, you can <a href=\"http:\/\/www.fountainheadindia.in\/FormPrinting\/FrmPrinting.aspx?IsBond=1&amp;IsVisible=0\" target=\"_blank\" rel=\"noopener\">download the application form<\/a> from company site or Financial Institutions and submit to collection centers.<\/p>\n<p style=\"text-align: justify;\">Also note that only option I to VI is also available in Physical Form while option VII to XI would only be available in Demat Form.<\/p>\n<h2 style=\"text-align: justify;\">Recommendation:<\/h2>\n<ol style=\"text-align: justify;\">\n<li>My recommendation is to<strong> invest some part of your Fixed Income investment in this NCD Issue<\/strong><\/li>\n<li>The <strong>Option XI (Doubling Money) is riskier than other options as that is unsecure<\/strong>. You should keep away from that option.<\/li>\n<li>You should always <strong>have diversified portfolio<\/strong> be it fixed deposit, NCD or equity investment<\/li>\n<li>Its good idea to <strong>remain invested till maturity<\/strong> because liquidity on exchanges are low and hence you would get lower than market value<\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><em><strong>If you plan to invest in this issue, do it early as most NCD issues are over-subscribed before the end date.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 9.25% interest rate. The issue is already open and would close on February 17, 2017. Muthoot Finance NCD \u2013 Significant Points: Offer Period:\u00a0January 17 to February 17, 2017 Annual Interest Rates\u00a0for Retail Investors: [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7581,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[31,30,194],"tags":[260,2328,2326,2327],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png",577,335,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest-300x174.png",300,174,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png",577,335,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png",577,335,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png",577,335,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png",577,335,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2017\/01\/Muthoot-Finance-NCD-\u2013-Jan-2017-\u2013-Should-you-Invest.png",120,70,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":0,"uagb_excerpt":"Muthoot Finance, the dominant player in Gold Loan Business has come out with public issue of non-convertible debentures (NCD) offering up to 9.25% interest rate. The issue is already open and would close on February 17, 2017. Muthoot Finance NCD \u2013 Significant Points: Offer Period:\u00a0January 17 to February 17, 2017 Annual Interest Rates\u00a0for Retail Investors:&hellip;","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/7579"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=7579"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/7579\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/7581"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=7579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=7579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=7579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}