Market-linked debentures (MLDs) are a type of debt instrument issued by companies in India. They are essentially a hybrid between a traditional debt instrument and a market-linked investment, such as a mutual fund or an equity index fund. MLDs are issued at a fixed rate of interest, but the value of the debentures is linked to the performance of a specified underlying asset, such as a stock index or a specific company's stock. The value of the debentures may increase or decrease depending on the performance of the underlying asset. MLDs offer investors the opportunity to participate in the potential appreciation of the underlying asset while also receiving a fixed rate of interest on their investment. They can be a good option for investors who want to diversify their portfolio and earn a potentially higher return than a traditional fixed income investment, but who are also comfortable with the added risk that comes with market-linked investments.
Alternate Investment Funds (AIFs) are investment vehicles that invest in assets other than traditional securities such as stocks and bonds. These assets can include real estate, private equity, hedge funds, and commodities, among others. AIFs are typically structured as private limited companies or trusts and are regulated by the Securities and Exchange Board of India (SEBI). They are designed to provide investors with the opportunity to diversify their portfolios and access a wider range of investment opportunities. AIFs can be open-ended, meaning that they can issue and redeem units to investors on a continuous basis, or closed-ended, meaning that they do not issue or redeem units after the initial offering. They can also be categorized as Category I, II, or III AIFs based on the level of risk and regulatory oversight associated with the fund.
Portfolio management services (PMS) are investment management services that are offered by professional money managers or financial advisors. These services involve the management of a portfolio of investments on behalf of an individual or institutional investor. The goal of PMS is to help investors achieve their financial objectives by selecting and managing a diversified portfolio of assets that are tailored to their specific investment needs and risk tolerance. PMS can be offered by a variety of financial institutions, including investment banks, brokerage firms, and wealth management firms. It is typically offered to high-net-worth individuals or institutions with large investment portfolios.
Real estate Non-Convertible Debentures (NCD) is a type of debt instrument that is issued by real estate companies or developers. These NCDs are typically issued to raise capital for the development or construction of real estate projects. They are non-convertible, which means they cannot be converted into equity shares of the issuing company. Investors who purchase NCDs are lending money to the issuer and are entitled to a fixed rate of interest on their investment. NCDs are typically listed and traded on a stock exchange, making them easily tradable.