Finitor Financial Services Private Limited facilitates investment in corporate deposits including rated deposits of NBFCs and Housing Finance Companies, also corporate & PSU bonds, dated securities (Govt bonds).
Fixed deposits are also called term deposits and time deposits. Corporate deposits provide a stable and fixed return at regular interval such as monthly, quarterly, half-yearly and annually. These deposits are specifically popular among zero or low income individuals including homemakers and senior citizens because returns (interest income) are generally higher than returns offered by scheduled banks for the identical period.
However, they carry higher default risk compare to other deposits. Liquidity is also an issue compare to other fixed investment instruments.
In India debentures (NCDs) and bonds are used interchangeably. NCDs and Bonds are issued by financial institutions, government undertakings and large companies. A debenture is similar to a bond except the securitization conditions are different. A debenture is generally unsecured and are not backed by any specific assets. Government bonds are called dated securities. State Government dated securities are known as State Development Loans (SDLs). There are two types of returns emanate from investment in bonds, one interest (coupon) receipts and other capital gain. Any increase in interest rates may cause adverse impact on the market value of bonds. Bonds could be both listed and unlisted. Dated securities have better liquidity. Tax implications are varied across different category of bonds.