Fixed Deposits (FD)
Fixed Deposits are considered to be a secured form of investment kept in banks for a certain period of time. The interest rates vary depending upon the duration of investment. Since there is no risk of market fluctuations, fixed deposits make life easy for the investors as they give them secured returns. As the term suggests, the deposits are fixed for the maturity period and if removed earlier, a premature penalty is charged.
Non-convertible Debentures (NCD)
Non-convertible debentures (NCDs) are another great mode of investment which give fairly attractive returns with low risks. Although, the interest rates as well as the rate of returns will vary according to the market conditions, the NCDs still receive good credit ratings. Due to the volatility of the markets, the value of an NCD has chances of falling and may even go below the face value. But it is advisable to keep an NCD till its maturity period gets over.
Bonds
Bonds are another type of secured investment in which a government, municipality, corporation, federal agency or other entity issue a bond to the investor in exchange of money promising to pay a specified rate of interest after the bond maturity. Bonds are also called as bills, notes, debt securities or debt obligations.