Interest

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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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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interest rate

The interest rate dilemma

On 1st April 2017 the Government announced a 10 bps interest rate cut across all small savings schemes offered, from Senior Citizen Savings Schemes to Public Provident Fund and mind you this is not the first cut over the last year when the government decided to revise small savings rates every quarter depending on economic/market …

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