Blog about Financial Education, Advisory & Planning
Markets bounced back sharply over the last month by over 10% to 17900 NIFTY levels. Lower 10 year g-sec rates & inflation globally have eased nerves to some extent. Given the lower inflation print we expect rate hikes to slow down over next 3 months. Prices of crude among other metals & mining commodities declined …
In an off-cycle meeting, the RBI raised the policy rate by 40 bps to 4.40%. Consequently, the SDF rate was increased to 4.15% and MSF rate to 4.65%. Yesterday’s surprise move is perhaps instigated by a couple of factors. Firstly, the 50 bps FED rate hike which came yesterday night. Secondly, the upcoming April inflation …
As part of the restructuring plan for Yes Bank, the RBI announced that the instruments qualifying as additional tier-1 capital (AT1), issued by Yes Bank under Basel-III framework, shall stand written down permanently, in full, with effect from the appointed date. This is for the first time in the history of the Indian banking sector …
The widening spread between accrual funds’ YTM and repo rate offer an attractive entry at the moment. Based on valuations, sentiments and industry flows, accrual schemes make a good buy at this juncture. Historically we have seen that whenever the spread between YTM and repo rate has been high, accrual schemes have given good risk-adjusted returns …
For most investors & corporates, saving & current bank account becomes the preferred destination to park their short term surplus funds. Further, even when they need to build a contingency fund, they cannot think of better havens. The reason for such a decision might be lack of awareness or a time crunch. However, leaving your …
My father became a senior citizen a few year back & I was looking for the best place to park his money where he would get a regular income. Senior citizen savings scheme (SCSS) is the simplest investment vehicle among all options available for retirees. Given the benefits it offers, retirees should first put in …
Bond investors have been hit hard over the past one-and-a-half year. For those in fixed deposits, the interest rates have been low and bonds/debt fund investors have been hit by tepid returns on account of rising bond yields. Currently the preferred strategy remains corporate credit, with exposure to both accrual and credit opportunity strategies. The 10-year …
A debt mutual fund holds debt instruments, and these instruments pay a particular coupon (interest). An accrual strategy is holding a bond, earning the interest due, collect the principal at maturity and reinvest it in fresh bonds. Liquid funds, ultra-short term funds, short-term debt funds, income funds and credit opportunity funds primarily follow an accrual …
Debt Mutual Fund: Duration Funds vs Accrual Funds Read More »
The current rally in Indian market is fuelled by strong liquidity from domestic investors. With low bank fixed deposit rates, subdued real estate market (with high transaction cost) and stagnating gold prices, equities seems to be the most viable domestic investment avenue for investors. Thus in spite of the markets reaching all-time highs & rich …
What is Capital? Capital is our hard-earned money which we save over the years. The next question thus is Why do we save? We save to meet our needs or goals in the future, or perhaps for contingency. Thus we invest the money we have with us instead of spending it, and wait for consumption for …