Equity Linked Debentures. With the high volatility in the equity markets, investors are increasingly looking at financial products which provide stability along with decent returns. ‘Equity-Linked Debentures’ (or ELDs) are products that provide: Capital protection,
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Simply put… ‘Equity Linked Debentures’ are popularly known as capital protection funds & give you the upside of equities and protect the downside!
As per the risk return chart above, ELDs offer better returns than FMP at a lower risk than equities.
In a typical payoff scenario, as illustrated above, ELDs, on an average, offer better returns than FMPs and even when the Nifty goes down, you recover your principal amount.