InvestorQ : how much percentage of money should be invested in NCDs ? I am conservative investor of 35 years old.
Hardik made post

how much percentage of money should be invested in NCDs ? I am conservative investor of 35 years old.

Answer
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Arti Chavan answered.
1 year ago


  1. NCDs or non-convertible debentures are good investment options for those individuals who want small but steady returns over time.
  2. NCDs are fixed-income investment options that cannot be converted to shares at any given point and hence, are known as non-convertible debentures.
  3. NCDs are debt investment options with a fixed tenure and interest income.

As a thumb rule, one’s exposure to debt instruments should be the same as their age. So, this means that you should only have 35% of your investment in NCDs. Since you are a conservative investor, you might be avoiding equities, so you can afford to increase this percentage to 40-45%.

In the future, you can slowly keep increasing this percentage and invest more in debt instruments.