NBFC bonds are debt instruments issued by Non-Banking Financial Companies (NBFCs) to raise capital from the market. These bonds offer fixed or floating interest rates and are typically issued with various maturities. Investing in NBFC bonds can provide higher returns compared to traditional bank deposits, but it comes with increased credit risk, as NBFCs are subject to different regulatory frameworks than banks. Before investing, it's essential to assess the NBFC's credit rating, financial health, and the bond's specific terms and conditions to make informed decisions. Investors should consider diversifying their bond portfolio to mitigate risk.
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