Query regarding NCD maturity amount – Will I get back my invested amount ?

POSTED BY sudhanshumishra12 ON May 31, 2014 10:03 am COMMENTS (2)

Hello everyone,

I have a  doubt whose solution, i wish to have from you.
My question is as follows :
Suppose i buy a NCD of rs 5000 offering some interest rate which will mature in 2 yrs ( interest paid monthly ).
Then , after maturity ( i.e after 2 yrs ) , whether I will get my principle amount which is rs 5000 back or not. I mean to ask whether it will be 5000 or less/more than 5000.
I have this doubt,because i have seen that after purchasing these NCD, they are traded like shares.I bought 5 units of  a NCD for rs 1000 per unit. but when i see it today , that same 1 unit is rs 990.
so, my doubt is whether after maturity , i will get my invested amount i.e  5000 back or not.
I will be thankful to you, if you could help me in this matter.
Sudhanshu mishra

2 replies on this article “Query regarding NCD maturity amount – Will I get back my invested amount ?”

  1. Hemanth Chandra says:

    If you wait till maturity, you will get the said amount (principal +interest).

    Suppose you can’t wait till the maturity then you can sell the NCD unit at that current day’s price.

    Hope your doubt is clarified

    1. sudhanshumishra12 says:

      thank you for the reply . now my doubt is cleared.

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