I was evaluating whether I can invest some money in Tata Capital NCD offer.
The NCDs, with interest rates of 11-12 per cent under four options, offer superior returns compared to bank fixed deposits, though they are riskier. Risk is little lower as these are secured debentures and are rated LAA+.The options are based on the periodicity of payments and the minimum amount they can invest. You also need a demat account to buy NCDs
The minimum application amount is Rs 10,000 for the quarterly, annual and cumulative interest payment options (coupon rate of 12 per cent an annum); and Rs 1 lakh for the monthly interest payment option (coupon rate of 11.25 per cent an annum). In the cumulative scheme is a lock-in scheme, investors have a put option at the end of 36 months to redeem their investments, without any interest rate penalty.In addition for all the options, there shall be no tax deduction at source (TDS) on the interest earned
If you are looking at good Fixed Income options I would recommend that you invest small amounts in cumulative option.