Non-convertible debentures (NCDs) are a financial instrument that is used by companies to raise long-term capital, through a public issue. NCDs are a debt instrument with a fixed tenure and offer regular interest at a certain rate. An NCD can either be secured or unsecured. A secured NCD is backed by the issuing company's assets. However, that's not the case for unsecured NCDs. This makes secured NCDs safer since they have a lower default risk.

An attractive secured or unsecured non-convertible debenture fund is used for asset allocation. It earns interest at attractive rates, depending upon options chosen by the investor.