to windupshut down secured ncd investors would get preference in repayment of capital along with interest as those backed up by assets of the company hence it is safe to invest in such secured ncd options cons only people with a demat account can apply it periods are fairly long 13 18 and 25 years whatever coupon is receivable is taxable though this trust is sponsored by nhai these ncds are not guaranteed by govt of indiathese bonds are offering better interest rates than bank fds and for a longer term as well plus the bonds offer easy exit as they are tradable on the bond market they are a great option for senior citizens who wish for stable income even for charitable organisations and trusts whose income is not taxed however they would not be advisable for individuals falling in the highest tax slab as the effective return would be quite low for them said ankit jain partner ved jain associates for the nhai ncd it stands in the middle of the pack because several banks do offer fixed deposits with higher interest rates moreover once you take into account taxation the yield drops to 566 said rishad manekia founder of kairos capitalwhich kind of investor is this bond most suitable somebody who is in the retiremirent stage and wants to lock his money with a stable safe and longterm return of 75 will find this ncd attractive so they can opt for the 13year or 18year period with their retirement corpus but if the retirement is a few years away then keep in mind that interest rates are on the upward trajectory for the next one year so if the itnerest rate goes up the price of ncds will actually come down if the investor wants to opt for such a longterm investment then he is better off waiting for the interest rates to go up and buy the ncd from the secondary market once the price comes down because then the net yield will be much better said chaitali dutta founder azuke personal finance advisor