What is an MLD?
A Market Linked Debenture is a structured product. It pairs a debt component, which protects the principal, with exposure to an underlying such as the Nifty 50 or gold, which drives the return.
Principal Protection
with Market Linked Returns
A structured product that combines debt and equity, designed to protect your principal, with returns linked to the performance of an underlying index or asset.
Chart with two lines. The grey line is the Nifty 50. The green line is your investment. First the Nifty 50 rises, up to 18% above the start, and the green line for your investment grows with it, to 30.6% above your principal. Then the Nifty 50 falls 20% below the start. A 20% fall is within the protected 20%, so the green investment line stays flat on the dashed principal line of ₹1,00,000 and never goes below it. Then the Nifty 50 rises again to 18% above the start: 1.7x returns turn a 18% rise into a 30.6% return, so the investment line climbs, never above the maximum return line of 51% in total. The path of the Nifty 50 is not a forecast.
Key features
Principal protection
Designed for investors who prioritise protecting their capital.
Market linked returns
Returns linked to an underlying such as the Nifty 50, a sector index or gold.
Debt and equity combined
The stability of debt with the growth potential of equity, in one product.
A defined return range
The product defines the minimum and maximum range of your returns before you invest.
Upfront clarity
Payout terms, tenure and relevant dates are disclosed at the outset.
Structured by experts
Created by issuers with deep expertise in markets and risk management.
About MLDs
How are returns determined?
Before you invest, each MLD sets out the underlying it is linked to and the basis on which your return is calculated. Your return depends on how the underlying performs.
Example: Up to 1.7x returns based on Nifty 50 gains between 0% and 30%, for a maximum return of 51%.
How is the principal protected?
The principal is returned at maturity as per the terms defined in the MLD.
Liquidity and taxation
Since this is a debenture, gains are taxed like interest income, at your income tax slab rate.
Open MLDs
Issues open for investment now or opening soon.
IN
InCred Nifty Sharkfin
Closed2x Nifty 50
Return
Variable
linked to Nifty 50
Protection
Full
Tenure
3 yrs 3 mo
View detailsClosed for investment · Minimum ₹10 lakh
IN
InCred Nifty Magnifier
Closed1.7x Nifty 50
Maximum return
51%
in total
Protection
Up to −20%
Tenure
3 yrs 3 mo
View detailsClosed for investment · Minimum ₹10 lakh
Questions people ask
- What is an MLD?
- A market linked debenture (MLD) is a debt instrument issued by a company.
- Is my principal protected?
- The principal protection is governed by the terms of each MLD. Many issues provide full principal protection.
- How much can I earn?
- The returns are linked to the performance of the index, and the terms define the MLD multiplier. However, MLDs do not offer guaranteed returns.
- What if the index falls a lot?
- If the fall is within the protection level, the principal is fully protected.
- Can I sell before maturity?
- MLDs are instruments that are held till maturity.
- How are MLDs taxed?
- Since this is a debenture, gains are taxed like interest income, at your income tax slab rate.
- Who can invest?
- Resident Indians and Indian entities can invest. Eligibility and minimum investment amounts are set by each issue.
- What are the risks?
- Market risk, issuer credit risk and liquidity risk apply. Read the term sheet before investing.
- How much to invest?
- It differs by issue and is shown on each MLD page. It is usually one lakh rupees or more, in steps of the face value.
Speak to our team
Share your details. A Stockify specialist will take you through the available MLDs and the application process.