How does an SIP grow? The power of compounding is real when it comes to SIP. Each monthly investment buys mutual fund units at prevailing prices (that is, more units when markets are down and fewer when they are up) and brings down the average cost over time. In the initial years, gains appear limited because the investment base is small, but as contributions accumulate and returns get reinvested, growth accelerates sharply. Over a 10–20 year horizon, returns generated on early investments form a major share of the final SIP corpus.
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CNBC TV1803-02-2026, 14:38

Muthoot FinCorp Launches ₹600 Crore NCD Issue for Public Subscription

  • Muthoot FinCorp has opened its first tranche of secured, redeemable non-convertible debentures (NCDs) for public subscription.
  • The company aims to raise up to ₹600 crore, with a base size of ₹200 crore and a green shoe option of ₹400 crore.
  • Funds will be used to support lending operations, repay existing debt, and meet general corporate requirements.
  • NCDs offer annual yields between 8.70% and 9.10% across tenures of 24, 36, 60, and 72 months.
  • The issue has received credit ratings of Crisil AA-/Positive and BWR AA/Stable, indicating high safety.

Why It Matters: Muthoot FinCorp's new NCD issue offers attractive yields and high safety for investors.

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