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Are NCD safe?

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NCDs are comparatively safer than equities and mutual funds.

NCDs are fixed income securities and are not impacted by market movements.

Secured non-convertible debentures are backed by the company's assets, which makes them low risk. Investors must review the important factors before investing in NCDs. NCDs are safer as they cannot be converted into equity and have security attached that investors will receive interest to some extent if the issuer fails.

 

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