Stable Income Solutions
Structured Fixed Income & MLDs
Market-linked debentures and structured products with defined payoffs. Base capital protection available on select offerings.
- Minimum
- ₹10 Lakh
- Risk
- Moderately High risk
- Liquidity
- Low — difficult to exit early
Overview
What this actually is
A market-linked debenture is a bond whose return is tied to the performance of an underlying reference — an index, for example — rather than to a fixed coupon.
Some MLD structures include base capital protection, meaning the structure is designed to return your principal at maturity even if the reference performs poorly. This is important to understand precisely: that protection depends on the issuer being able to pay. It is a feature of the structure, not a guarantee, and it does not survive an issuer default.
Why consider it
What it does well
- A defined payoff structure known before you invest.
- Base capital protection available on select structures, subject to issuer credit.
- Return potential above a comparable fixed deposit, with correspondingly different risk.
- Structures can be matched to a specific horizon.
Key details
The specifics
- Minimum
- ₹10,00,000
- Indicative return range
- 8.5–12%Indicative
- Base capital protection
- Select structures only, subject to issuer credit
- Liquidity
- Low — designed to be held to maturity
Who is this for
You might be a fit if…
If none of these describe you, that is useful information too — tell us on the call and we will point you somewhere more suitable.
- Investors able to commit ₹10,00,000 or more
- Investors who can hold to maturity
- Investors seeking a defined payoff rather than open-ended market exposure
Risks & considerations
- Capital protection, where offered, depends entirely on the issuer meeting its obligations. If the issuer defaults, protection fails.
- Returns are linked to an underlying reference and are not assured. A poor reference outcome can mean returns of zero.
- Indicative yields are illustrations of how the structure behaves, not forecasts and not promises.
- MLDs are illiquid. Exiting before maturity may be difficult or require accepting a significant discount.
- Payoff structures are complex. Do not invest in one you cannot explain back in your own words.
- Tax treatment of market-linked debentures has changed in recent years and should be confirmed before investing.
Important information
Base capital protection is a feature of select market-linked debenture structures only. It is subject to the issuer meeting its obligations and is not a guarantee. Returns on market-linked debentures are linked to an underlying reference and are not assured.
Indicative yields. Not a guarantee. Subject to market and credit risk. Consult your advisor.
Investment in securities market are subject to market risks. Read all related documents carefully before investing.
Investment in Nuvama products is facilitated by Sarvam Associates as an authorised distribution partner. Products are offered by Nuvama Wealth Management Ltd. All investments are subject to market risks. Please read all scheme related documents carefully.
Sarvam Associates is a distribution partner, not the manufacturer of these products.
Questions
About Structured Fixed Income & MLDs
Does 100% base capital protection mean my money is safe?
It means the structure is designed to return your principal at maturity even if the underlying reference performs poorly. It does not protect you if the issuer fails to pay. Protection is a feature of the structure and depends on issuer credit — it is not a guarantee and it is not the same as a deposit.
Where does the 8.5–12% figure come from?
It is an indicative range describing how these structures are designed to behave across different outcomes. It is not a forecast, not a promise, and not a range you should expect to receive. Actual returns depend on the underlying reference and could be lower, including zero.
Also in Stable Income Solutions
Debt Funds
Debt Mutual Funds
Liquid, ultra-short, short-duration and corporate bond funds for investors who need stability with access.
Moderately Low risk- Liquidity
- High — redeem in days
From ₹1,000Bonds
Corporate & G-Sec Bonds
Direct bond investments with fixed coupon payments — PSU bonds, NCDs and government securities.
Moderate risk- Liquidity
- Low — difficult to exit early
From ₹10,000
Next step
Talk to a Sarvam advisor
Fifteen minutes on structured fixed income & mlds — whether it fits, what it would cost you, and what could go wrong. No obligation either way.
Important information
Mutual Fund investments are subject to market risks. Read all scheme related documents carefully before investing.
Sarvam Associates is a distribution partner, not the manufacturer of these products.
The content on this website is for general information only and does not constitute investment advice or a recommendation to buy or sell any product. Product suitability depends on your individual circumstances. Please speak with an advisor before investing.