debt mutual fund

bonds

Should investors invest in bonds now?

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 …

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SEBI

New fund categories proposed by SEBI

The big announcement last year in the mutual fund industry was categorization and rationalization of mutual fund schemes by SEBI. The market regulator sought to bring uniformity in the characteristics of similar schemes to ensure that an investor is able to evaluate various options before making any investment. As per the circular, SEBI has demarcated a …

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Debt Mutual Fund

Debt Mutual Fund: Duration Funds vs Accrual Funds

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 …

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What is driving liquidity in the markets?

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 …

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Equity savings fund- New kid on the block

Equity savings fund is a new variant in the equity mutual fund basket. They had emerged after the Union Budget 2014 increased the holding period for debt mutual funds to qualify as a long-term capital asset from one year to three years. The funds aim to generate returns from equities, arbitrage trades, and fixed income …

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Interest rate fall- Think beyond bank fixed deposits…

Though lending rate decline is good news for home loan buyers, decline in FD rates are making investors worry. With interest rates for deposits falling to 6-7% levels retail investors are feeling the pinch. So how to deal with a falling interest rate scenario and are there alternatives is what investors are thinking now. Mutual funds, …

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