Muthoottu Mini Financiers NCD Jan 2021 – doubles money in 84 months – is it safe?
Muthoottu Mini Financiers NCD Jan 2021 is claiming that you can double your money in 84 months.
Now, with the present bank Fixed rates doubling the money in 10 years also not possible.
But this NCD is claiming that your money will be doubled in 7 years ( 84 months).
In this article, I will explain, whether your money will be doubled in 84 months?.
And the features and benefits of this NCD.
In addition, I will also explain the risks associated with this investment.
Muthoottu Mini Financiers NCD Jan 2021 10.25% interest features…
- Muthoottu Mini Financiers is issuing both Secured and Non-Secured NCDs.
- This NCDs starting date is 13th January 2021 and the closing date is 9th February 2021.
- The face value of NCD is Rs.1,000.
- In addition, NCDs are available in 8 different options.
- The NCD interest will be payable monthly or at maturity depending on the option chosen while investing in it.
- You have to invest in a minimum of 10 bonds i.e you should invest a minimum of Rs.10,000 and after that, you can invest multiples of 1 bond.
- NRIs are not allowed to invest in these NCDs.
- While investing in the NCDs, you should look at the rating of the NCD.
- IND rating rated this NCD as IND BBB, outlook stable.
- So, this NCD contains moderate credit risk in repaying the principal back to the investors and Hence this NCD has moderate safety and moderate risk.
- In addition, these NCD bonds will be listed in BSE, hence these are liquid NCDs.
The other details of this NCD you can find in the below image.
you can find in the image, that you can select different maturity options and different interest options also in the above image.
In addition, there are secured and unsecured NCDs available
Why should consider Credit Rating before investing in any NCD?…
The rating for this NCD by IND rating is BBB, Outlook stable.
In addition, with this credit rating, the NCD carries moderate safety and carries moderate credit risk in repaying the money in a timely manner to the investors.
Higher the credit rating lower will be the interest rate the NCDs will offer.
As the rating of this NCD is low, it is offering such a higher interest rate.
One more important thing is these credit ratings may change at any time.
For example, last year DHFL credit rating suddenly changed from AAA to Default in a single day.
Sometimes also credit rating of a company may be increased.
So, keeping credit rating and interest-only mind investing in this kind of NCD is not good.
You should understand the risks and then has to invest in this kind of NCDs
Which NCD to chose out of secured or unsecured?….
If you see unsecured NCD is offering a higher interest rate of 10.25%.
and Secured NCD of this Muthoot NCD is offering lesser interest than unsecured.
Generally, Secured NCDs are safer than unsecured ones.
So, I advise looking for safety instead of higher interest.
Conclusion about this Muthoot Mini Financiers Jan 2021 NCD…
Every person risk-taking ability in investments will not be the same,
So, I advise you to go through your risk profiling before investing in this NCD.
Or consult your financial adviser before investing.
Read this article, Wait before investing in real estate investment.
Also, read How credit card will make money?.’
and Why you should not mix life insurance with savings?…