INTERVIEW QUESTIONS INVESTMENT BOND DETAILS

Question: Is investing in NCDs better than parking funds in corporate and Bank FDs?

Answer: NCDs vs. Corporate fixed deposits: Yes, of course NCDs are better than company FDs. Though usually the interest rates on NCDs and company FDs are more or less the same, what tilts the balance in favour of NCDs is the risk-return factor. Furthermore, there is also potential to earn capital appreciation from NCDs if there is a downward movement in the interest rates.

NCDs vs. Bank fixed deposits: Again, NCD is better than a bank FD because the interest differential is quite significant which comes at just a slightly higher risk. In other words, risk-return ratio is in favour of NCDs.

NCDs vs. Corporate fixed deposits: Yes, of course NCDs are better than company FDs. Though usually the interest rates on NCDs and company FDs are more or less the same, what tilts the balance in favour of NCDs is the risk-return factor. Furthermore, there is also potential to earn capital appreciation from NCDs if there is a downward movement in the interest rates.

NCDs vs. Bank fixed deposits: Again, NCD is better than a bank FD because the interest differential is quite significant which comes at just a slightly higher risk. In other words, risk-return ratio is in favour of NCDs. Source: CoolInterview.com

If you have the better answer, then send it to us. We will display your answer after the approval.

Rules to Post Answers in CoolInterview.com:-

• There should not be any Spelling Mistakes.
• There should not be any Gramatical Errors.
• Answers must not contain any bad words.
• Answers should not be the repeat of same answer, already approved.
• Answer should be complete in itself.

Name :*
Email Id :*
Answer :*
Verification Code	Not readable? Load New Code
Enter the above shown code: *
	Inform me about updated answers to this question