Are NCDs a good option for retirement planning?
Yes, they are useful. They generate fixed income. However, you don't get diversification. Your money is as good as the company whose NCD you are buying. Most investors are better off in a fixed income fund. If you have a sizeable part of your money invested in the NCDs of one or two companies and they aren't able to honour their principal or interest commitments, you will be in real trouble. In mutual funds, this will be a very small part of your investments. Take a holistic view while planning for retirement - ensure that at least a third of your money is in equity.