debt mutual fund

accrual funds

Accrual funds: a great contrarian bet

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 …

Accrual funds: a great contrarian bet Read More »

duration funds

Time to take a call on duration funds

Debt mutual funds, broadly, follow one of the two strategies. One type of fund aims to make money out of predicting interest rate movements. Accordingly, it will buy and sell securities to have a particular maturity date of the portfolio. This strategy is called duration strategy. The second type of fund aims to invest in …

Time to take a call on duration funds Read More »

Indian equities 2018

2018- Reality check for indian equities

The year 2018 proved to be a tough one for Indian equities with the SENSEX clocking minor gains of 6% as against 28% in 2017. On the contrary the BSE 500 posted 3% negative return against a gain of 36% in 2017. For broader markets, the year proved a dampener as the BSE Midcap index plunged 13% and Small …

2018- Reality check for indian equities Read More »

Liquid Fund

Liquid Fund vs Savings & Current Account

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 …

Liquid Fund vs Savings & Current Account Read More »

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 …

Should investors invest in bonds now? Read More »

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 …

New fund categories proposed by SEBI Read More »

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 …

Debt Mutual Fund: Duration Funds vs Accrual Funds Read More »

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 …

What is driving liquidity in the markets? Read More »

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 …

Equity savings fund- New kid on the block Read More »