While IIFL is an established company and the NCDs offer a high rate of return along with regular income, it is paramount that you understand risks related to NCD investments, for returns are not guaranteed.
If the proposal goes through, commissions are expected to fall by 25 to 50 bps. Low commissions may see new entrants change their minds, or become a sub-broker of a large national distributor.
The drastic fall in equity fund inflows in April 2023 doesn’t suggest fading interest in equities, as flows into systematic investment plans and accounts have gone up. But debt funds face serious competition from fixed deposits and small-saving schemes, say distributors.
Bank FDs offer a certainty of income, but once the interest accrues, you have to pay tax and then reinvest the proceeds immediately, if you don’t need it. Debt funds help prevent such leakages.