Ans. Market-Linked Debentures (MLDs) are structured debt investments whose returns are tied to the performance of a market index (e.g., Nifty 50, Leap Index). They combine the safety of fixed-income instruments with the potential for market-linked returns.
Structured Product (MLDs)
Market Linked Debentures Smart, Secure, and Market Driven Returns
Grow Your Wealth with Market-Linked Investments
What Are Market-Linked Debentures (MLDs)?
Market-Linked Debentures (MLDs) are debt instruments that combine the safety of fixed-income investments with the potential for market-linked returns. Unlike traditional fixed deposits, MLDs tie your returns to the performance of a market index such as the Nifty 50 or sector-focused indices like the Leap Index.
In Principal-Protected (PP) MLDs, your invested capital is fully secured, allowing you to participate in market growth without taking full equity risk.
Why Investors Choose MLDs
- Capital Protection (in PP MLDs)
- Market-Linked Upside with debt-like safety
- Back-tested, transparent structures
- Tax-efficient (LTCG benefits on eligible MLDs)
- Diversification across asset classes
- Attractive risk-adjusted yields
- Customizable formats based on goals
Why Structured Products (MLDs)?
Low interest rates and inflation have weakened traditional fixed returns. Structured Products offer
a smarter way to seek better real returns.
Inflation-Efficient
Better aligned for today's market conditions
Beyond Fixed Income
A smarter alternative to traditional returns
Portfolio Diversification
Supports stronger asset allocation
Customized Solutions
Designed around investor needs
Regulated & Trusted
Due diligence under SEBI & RBI framework
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MLD Investment OptionsChoose Based on Your Risk Preference, MLDs are available in two categories to suit different investor needs:
-
Principal ProtectedFor investors seeking capital protection with market-linked return potential. Options Available:
• Nifty AWE • Gold AWE
-
Non-Principal ProtectedFor investors seeking higher return potential with greater market participation. Options Available:
• Leap Beta • Nifty Beta
| Structured Products | Nifty All Weather Equity (AWE+) | All Weather Gold (AWG+) | Leap Beta | Nifty Beta |
|---|---|---|---|---|
| Tenure | 42 Months | 42 Months | 42 Months | 42 Months |
| Benchmark | Nifty 50 | MCX Gold | Leap Index | Nifty 50 |
| Pay Off | AWE+MAKES 5.7% ABSOLUTE RETURN for each 1% absolute return post 10% gain made by Nifty OVER 3yrs | AWG gives 50% absolute return if MCX Gold (underlying) gives 25% absolute returns over 3 years | LEAP BETA OFFERS 1.6X of the equity upside & 1x in downside | NIFTY BETA OFFERS 1.45X of the equity upside with the same 1x downside |
| Salient Features | Your principal is protected in case Nifty falls after 3years. | Your principal is protected in case the underlying levels go down. | Principal is not protected | Principal is not protected |
| Performance based 10 Years data | Over the last 10 years. AWE+ has given atleast 57% atleast 90% times. | On 95% occasions AWG delivers the promised returns | On 95% occasions Leap Beta delivers the promised returns | On 95% occasions Nifty Beta delivers the promised returns |
| Taxation | STCG-taxed as per income slab. Can be adjusted against STCL | STCG-taxed as per income slab. Can be adjusted against STCL | STCG-taxed as per income slab. Can be adjusted against STCL | STCG-taxed as per income slab. Can be adjusted against STCL |
| Suitable Substitute to | Fixed Deposit | Gold ETF, Physical Gold | M2M Products | M2M Products |
What Our Clients SayTrusted by Investors
Across India
My 5–8 year journey in Mutual Funds, Bonds, and MLDs has been smooth, thanks to the supportive staff and practical investment advice.
Himanshu BudhirajaBusinessman
Their experienced team helped me diversify my portfolio and has always been available on one call with excellent post-investment support.
Gufran AhmedBusinessman
Over the last 5 years, their team has always provided timely updates, clear guidance, and quick support. I would happily give them 10/10.
Sanjay MittalBusinessman
Why Choose Jekota for Your MLD Investments?
- Trusted Wealth Management: Professional guidance to help you grow your portfolio securely.
- Expert Advisors: Tailored investment strategies based on your financial goals.
- Transparent & Secure Transactions: Track and manage your investments easily.
- Innovative Products: Access high-growth opportunities like MLDs, Leap Index, and Nifty 50.
Insights, updates, and perspectives on markets, planning, and risk
Explore blogsDisclaimer
Investments in market-linked debentures and indices are subject to market risks. Past performance is not indicative of future results. Please read the offer documents carefully and consult a financial advisor before investing.
FAQs About MLDs
Q.1 What are Market-Linked Debentures (MLDs)?
Q.2 Are MLDs safe? Is my principal protected?
Ans. MLDs typically offer a debt-like structure, but principal protection depends on the specific product. There are principal-protected (PP) MLDs and non-principal-protected (NPP) variants. In PP options, your initial capital can be fully secured, while NPP versions may involve capital risk depending on market performance.
Q.3 How do returns on MLDs work?
Ans. MLD returns generally comprise two parts: a fixed coupon (like a bond) and a market-linked return based on index performance. For example, if your MLD is linked to the Nifty 50 and the index grows, you earn a proportionate share of the upside, plus the fixed coupon payments.
Q.4 What is the minimum investment required for MLDs?
Ans. The minimum investment for MLDs varies depending on the issuer and the product. Typically, MLDs require a higher initial amount than regular bonds or fixed deposits. It's best to check the specific offer document or speak with a wealth advisor for precise terms.
Q.5 How liquid are MLDs? Can I redeem them early?
Ans. Liquidity depends on the terms of the specific debenture issue. Some MLDs may have a lock-in period or limited secondary market liquidity. Investors should review the offer documents or request information on redemption terms before investing.
Q.6 What are the tax implications of investing in MLDs?
Ans. Tax treatment for MLDs generally follows the rules applicable to debt instruments. The coupon income may be taxed as interest, and any capital gain (when redeemed) can attract capital gains tax. For accurate financial planning, it's wise to consult a tax advisor or wealth management professional.
Q.7 How do MLDs help in building a diversified investment portfolio?
Ans. By combining fixed-income characteristics with market exposure, MLDs can act as a bridge between debt and equity. This makes them a useful tool for asset allocation, helping you manage risk while participating in market growth.
Q.8 What are the risks of investing in MLDs?
- Market Risk: Your market-linked return depends on the underlying index's performance.
- Credit Risk: As with any debenture, there's a risk that the issuer may default.
- Liquidity Risk: Limited secondary market or restricted redemption terms can make early exit difficult.
- Tax Risk: Changes in tax law may affect net returns.