Several non-banking financial companies have come out with non-convertible debentures (NCDs) offering up to 12.25 per cent pre-tax return.

Deccan Chronicle Holdings - the company which owns Deccan Chronicle newspaper - slipped to an all-time low on the bourses amid reports that the company is facing severe financial crisis.

Fixed maturity plans (FMPs), which are regarded as an alternative to bank and company fixed deposits, are not very popular with retail investors because of little clarity on returns they would generate. Learn how to calculate expected returns from details in FMP offer documents.

Air India, the cash-strapped national carrier, is expected to generate Rs 7,400 crore (over $1,640 million) by issuing government-backed non-convertible debentures.

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The government also approved a proposal to hive off Air India's MRO business and its engineering sServices as two wholly-owned subsidiaries, placing about 19,000 of around 28,000 total employees with them.

The plan, approved by the Cabinet Committee on Economic Affairs (CCEA), includes infusion of additional equity.

The plan to infuse more money into the national carrier aims to provide funds needed for payment of salaries of 31,000-plus AI employees delayed for months.

Air India's Financial Restructuring Plan has been approved by a consortium of banks, which may enable the ailing carrier save several hundred crore in the first year itself.

Promoters of leading gold loan company Muthoot Finance may dilute their stake by up to 10 per cent to raise funds in the next fiscal.

There are signs that the Reserve Bank of India will soon be reversing the rate increase cycle. This should be reason enough for you to tweak your fixed income portfolio.

Manappuram Finance's filing comes a day after the central bank cautioned it against accepting public deposits as the firm has converted to a non-deposit NBFC.

The mathematics of return clearly favours company FDs and non-convertible debentures. As with any other investment option, the risk of losing money should be a key consideration here as well.

Debt funds, which invest in a range of debt and fixed-income securities of different maturities and credit quality, protect you from equity market volatility and offer decent returns. This could be the best time to bolster your portfolio with debt funds.

Company deposits and NCDs offer more than bank deposits with slightly higher risk.

Like any listed company, a rating agency must deliver consistent revenue growth and keep its shareholders happy. Many in the industry argue that, given the lack of a sizeable debt market, agencies look beyond their core business and end up grading business schools, IPOs, MFIs, real estate projects and even hospitals. Is the lack of a vibrant debt market in the country spelling trouble for the industry?

Gold financing company Muthoot Finance on Monday said it plans to raise about Rs 6,000 crore in the current fiscal to meet working capital requirements.

The NCD issue with three investment options and effective yield of up to 12.25 per cent per annum opens on August 23 and closes on September 5, 2011.

Non-convertible debentures offer 2-3 percentage points more in interest than bank fixed deposits for a slight increase in risk.

Part of your savings should be invested in fixed-income instruments to stave off the risks inherent in equity instruments.