High levels of inflation in most economies have increased volatility in equity markets and lowered returns. It may remain so in the immediate term
The interest rate differential and the government’s resolve on fiscal consolidation have attracted investors to bonds.
Government bond yields rises significantly over the past 12 months and may peak out soon. But India’s real yields outperform most emerging markets. This creates a short-term opportunity and prospect of making healthy medium-term returns
This partnership aims to enable GoldenPi’s audience to invest in various fixed income instruments, including high-rated bonds and NCDs from trusted institutions at a starting price of just Rs 10,000
The 50 bps hike in the repo rate came as anticipated and the accompanying commentary didn’t veer from the expected script. But the RBI governor didn’t offer clear guidance for the coming months either.
While domestic liquidity and interest rate outlook would be the driver for Indian bonds, global events will continue to have an overarching effect
Several issues impede India’s inclusion in global bond indices, such as the capital gains tax policy.
But the design should be user-friendly. They ought to be liquid, with interim cash flows, and the tenure should not be long.
You should avoid taking any extreme view on your fixed income portfolio. If the yields on long duration bonds move up, then there will be marked to market losses on these bonds as well as on debt fund schemes investing in them.
This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.
As interest rates rise and bond yields go up, non-convertible debentures are set to become attractive. But keep an eye on the company’s credit rating
As things stand, no taxpaying investor should consider saving via direct investments in any fixed income instrument, including in government securities. Instead, she would be much better off investing via a debt mutual fund that undertakes identical investments, notwithstanding the added fund management fee
Fixed income funds or debt funds are typically used to reduce volatility in your portfolio. That doesn’t mean that your returns are guaranteed. There’s a big difference
The benchmark 10-year government security yield eased after the RBI’s announcements and the stock market indices turned green.
Investing your hard-earned money in fixed income space is a tough call, given the anticipation of higher interest rates going forward
The government has seen it fit to keep interest rates on small savings schemes such as NSC and PPF steady despite them being pegged to g-sec yields that have fallen in the last two years. But benchmark yields have been rising now.
Don’t touch your existing debt funds, say financial planners. But if you want to invest incremental money, deploy slowly
In the current inflationary scenario, locking in rates for long term is not a wise scenario and the short term rates are not at all remunerative.
Market-level fluctuations are part and parcel of any market, be it equity or debt or commodities. Price levels work in cycles and if you stay the course, you will reap your returns.
Since FMPs come with a specific timeframe, are close-ended, and of a specific credit quality, investors must first ensure the profile of the new schemes suit their investment objectives.
The EPFO has announced lowest interest rate in over 40 years, causing heartburn among EPFO’s 60 million members, or salaried employees. However, EPF as well as its extension VPF continue to be indispensable as retirement planning tools.
Generating alpha will become more and more challenging