ICL Fincorp Limited NCD – Key Highlights and Benefits

Introduction
ICL Fincorp Limited is a Non-Banking Financial Company that offers various financial products to its customers. One of the investment options it provides is Non-Convertible Debentures (NCDs), which can be a viable option for investors looking for fixed income securities. In this article, we will explore the key highlights and benefits of investing in ICL Fincorp Limited NCDs.

What are Non-Convertible Debentures (NCDs)?
Non-Convertible Debentures are fixed-income instruments issued by companies to raise long-term funds. Unlike convertible debentures, NCDs cannot be converted into equity shares of the issuing company.

ICL Fincorp Limited NCD – Key Highlights
1. Attractive Interest Rates: ICL Fincorp Limited NCDs offer competitive interest rates, making them an attractive investment option for individuals looking for fixed returns.

1. Multiple Investment Options: Investors can choose from various investment options based on their investment horizon and risk appetite, such as monthly, annual, or cumulative interest payout options.

2. Credit Rating: The NCDs issued by ICL Fincorp Limited are rated by credit rating agencies, providing investors with an indication of the creditworthiness of the issuing company.

3. Flexible Tenure: ICL Fincorp Limited NCDs come with different tenure options, allowing investors to select the maturity period that aligns with their financial goals.

4. Liquidity: While NCDs are not as liquid as other investment instruments like stocks, ICL Fincorp Limited NCDs are tradable on stock exchanges, providing investors with an exit route if needed.

5. Tax Efficiency: Interest earned on NCDs is taxed as per the investor’s tax slab, making it a tax-efficient investment option, especially for investors in higher tax brackets.

Benefits of Investing in ICL Fincorp Limited NCDs
1. Regular Income: NCDs provide investors with a regular source of income through periodic interest payouts, offering stability to their investment portfolio.

1. Diversification: Including NCDs in an investment portfolio can help in diversifying risk as they have a lower correlation with other asset classes like equities.

2. Relatively Higher Returns: ICL Fincorp Limited NCDs offer higher returns compared to traditional fixed deposits, making them an attractive option for investors seeking better yield.

3. Capital Protection: Being a fixed-income instrument, NCDs offer capital protection as the issuer is liable to repay the principal amount along with the promised interest.

4. Risk Mitigation: Investing in NCDs issued by a reputed company like ICL Fincorp Limited can help mitigate risks associated with market volatility as they offer fixed returns.

FAQs about ICL Fincorp Limited NCDs
1. Are NCDs safe investments?
NCDs are relatively safe investments compared to equities as they offer fixed returns and capital protection. However, investors should conduct due diligence on the issuer’s creditworthiness before investing.

1. How is the interest on NCDs taxed?
   Interest earned on NCDs is taxed as per the investor’s tax slab under the head ‘Income from Other Sources’.

2. Can NCDs be traded on stock exchanges?
   Yes, NCDs issued by companies can be traded on stock exchanges, providing investors with liquidity and an exit route.

3. What is the minimum investment amount for ICL Fincorp Limited NCDs?
   The minimum investment amount for ICL Fincorp Limited NCDs varies based on the series and investment option chosen by the investor.

4. Are NCDs suitable for short-term investments?
   NCDs are typically considered as long-term investment options due to their fixed tenure and interest payout structure.

Investing in NCDs, such as those offered by ICL Fincorp Limited, can be a prudent decision for investors seeking fixed income options with attractive returns. It is essential to assess your investment objectives, risk appetite, and conduct thorough research before investing in any financial instrument.