Navi Finserv Private Limited

Bond - NFPL-9.1792%-5-4-23-PVT IND A RATED MAKE INFLATION BEATING RETUNS RATED BY MOST TRUSTED AGENCY FORGOT FDs Go Navi New digital transformation of financial services Navi Finserv Private Limited (Formerly Known as Chaitanya Rural Intermediation Development Services Private Limited) is incorporated on February 14, 2012 as a Private Limited Company. Navi Finserv with its systematic and focused approach strives to meet the borrowing needs of the middle income families, and aims to be a Pan India Financial Services Company and provide the full spectrum of financial services, by developing various types of financial products. Bond details : Ratings: Rating my India rating and research, a Fitch group company. IND stands for Ind-Ra Rating Scale for Long Term Debt Instruments  IND A -Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such instruments carry low credit risk. Pros : Bonds have a clear advantage over other securities. The volatility of bonds (especially short and medium dated bonds) is lower than that of equities (stocks). Thus bonds are generally viewed as safer investments than stocks. In addition, bonds do suffer from less day-to-day volatility than stocks, and the interest payments of bonds are sometimes higher than the general level of dividend payments. Bonds are often liquid. It is often fairly easy for an institution to sell a large quantity of bonds without affecting the price much, which may be more difficult for equities. In effect, bonds are attractive because of the comparative certainty of a fixed interest payment twice a year and a fixed lump sum at maturity. Bondholders also enjoy a measure of legal protection: under the law of most countries, if a company goes bankrupt, its bondholders will often receive some money back (the recovery amount), whereas the company’s equity stock often ends up valueless. Furthermore, bonds come with indentures (an indenture is a formal debt agreement that establishes the terms of a bond issue) and covenants (the clauses of such an agreement). Covenants specify the rights of bondholders and the duties of issuers, such as actions that the issuer is obligated to perform or is prohibited from performing. There are also a variety of bonds to fit different needs of investors, including fixed rated bonds, floating rate bonds, zero coupon bonds, convertible bonds, and inflation linked bonds. Cons : Bonds are subject to risks such as the interest rate risk, prepayment risk, credit risk, reinvestment risk, and liquidity risk. Rating parameters : Should you invest in this bond or not ? Considering the current volatile capital market conditions if you are looking for targeted fixed returns but also want yield higher then bank FDs then this product is suitable . Risk appetite of investor should be low to medium. Anybody who wants to park their money for year and more and can bear some risk then this bond is suitable . Considering current market conditions and newness of company issuing bond , leveraging for investment is not advisable . Key words : Rating ,risk, FD, volatility, monetary policy, yield