Muthoot NCD Issue

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 :)

asked Mar 07 '12 at 21:13 by sandeepks83 114

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.

answered Mar 09 '12 at 13:41 by Pankaj Batra 5.2k320


Know someone who can answer? Share a link to this question via Email, Twitter, or Facebook

Your answer
toggle preview

Follow this question

Once you sign in you will be able to subscribe for any updates here

Markdown Basics

  • *italic* or __italic__
  • **bold** or __bold__
  • link:[text]( "title")
  • image?![alt text](/path/img.jpg "title")
  • numbered list: 1. Foo 2. Bar
  • to add a line break simply add two spaces to where you would like the new line to be.
  • basic HTML tags are also supported



Asked: Mar 07 '12 at 21:13

Seen: 1,124 times

Last updated: Mar 09 '12 at 13:41

Related questions