What Are Debentures? Meaning, Features, Types And More
Last Update Date: 06-10-2026
Published by Outlook Money
Abhishek Kumar's role: Quoted
Abhishek Kumar said debentures carry single-issuer default and liquidity risks that diversified debt funds do not. He suggested treating them as a small satellite holding, checking ratings and issuer finances, and that risk-averse investors stick to FDs or gilt funds.
More of Abhishek's views on money management
The article explains what debentures are, how they differ from bank loans, and the main types, including convertible, non-convertible, secured, unsecured and perpetual debentures. It also covers their key features and the credit, interest rate and inflation risks investors face.
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What Are Debentures? Meaning, Features, Types And More