You are here

Home » » 702 » Benefits of Debentures

Benefits of Debentures

Check out Benefits of Debentures discussed below. So let us find out some information on benefits to know more about debentures. Also check out Advantages and disadvantages of debentures for more details

Debentures Benefits :

Debentures helps to provide long term funds to the companies.

The rate of interest which is payable on debentures is generally lesser than the rate of interest which is being payabe on shares.

Debenture holder do not have any voting rights hence debt financing does not result into dilution of control.

Debentures are less costly and no ownership dilution.

Debentures can be easily redeemed when the company has surplus funds.

Debentures can be considered as a safe investment and fixed source of investment.

Debentures has definite maturity period.

Debentures helps companies to raise funds for a specific period of time.

Debentures also enables the company to trade on equity.

Tags:

Explore more Information

Advantages and disadvantages of Debentures

Check out Advantages and Disadvantages of Debentures discussed below. So let us find out some information  to know more about it. The debentures which are generally issued by the corporations, are promises to pay specific amount of principal or money at a specified time or date over the particular course of the loan tenure, during which time interest is paid at a fixed rate on decided dates.

Advantages of Debentures :

Debentures is used to provide long terms funds to the company when needed.

Features of Debentures

Check out Features of Debentures discussed below. So let us find out some information on features to know more about debentures.

Debenture Features :

The rates which is to be paid or payable on debentures is fixed.

Debenture may be convertible

No voting rights on debenture, holder does not have right to vote in a meeting.

Instrument of loan

Debentures can be redeemed after a fixed period of time.

Debenture holders can be considered as creditors of the company carrying a fixed rate of interest.

Advantages and Disadvantages of Mutual Funds

Advantages and Disadvantages of Mutual Funds are as follows, So let us check it out one by one.

Advantages:

The following are the advantages of mutual funds:

1. Easy to Invest

Mutual Fund investment is easy, simple and convenient.It is easy to buy and redeem shares in mutual funds.

2. Managed Professionally

Mutual funds uses professional manager to make various decisions regarding the companies to invest on. The portfolio of stocks/bonds is managed by assigned experts.