Hi Pankaj Sir, Could you please advise me if the current NCD issue of Muthoot Finance is attractive as it claims 13% for 2 years tenure? I do not know the working of NCD, wanted to know how can a person redeem the amount after maturity i.e does he have to sell the fund units in BSE/NSE? Thanks for answering my previous queries. It reminds me to seek your help whenever I am in dilemna with regards to financial planning :)
1 Answers
Muthoot finance has business model of gold loans and cannot be considered safe business for long term perspective.
As of now company is doing good, but their dream run cannot live forever. Gold is speculation product and may see price correction once world economies improve.
You should not be exposed for more than 5-10% of your portfolio for such kind of investments. High returns generally comes with high risk.
If you want to play safe, you can invest into fixed deposits/Fixed maturity plan (FMP) mutual funds as of now, they are offering around 10% at this moment.
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