Dear Friends, I am reproducing extracts of an article dated 3rd Aug which appeared in Economic times, with some portions highlighted (full article appended below). This article highlights how fund managers are advising their clients to exit long term debt funds and shift investments to short term funds. My take is, we have to preempt, […]
Dear Friends, The year 2017 comes to a close. What a year it has been !! Sensex & Nifty have gained by around 30% each, while the INR has appreciated by over 6%. Gold has gained by 7%. In contrast, the benchmark 10-year government bond is the worst-performing asset in calendar year 2017. The bond […]
Dear Friends, In my article dated 30th Nov’2015, I had advocated investments in debt funds as an alternative to FD. Throughout 2016, we had advised investors to move out from gilt and invest in accrual products as the yields had come down to abysmal lows of 6.50% to 6.20 % without a commensurate reduction in […]
Dear Friends, RBI, in its monetary policy on 8th Feb’17, changed its stance on interest rates from “accommodative” to “neutral”. What it means is that it signaled the end of immediate further interest rate cut, thereby catching off guard each and every fund manager in the country. This act of RBI, sent seismic waves into […]
Dear Friends, I reproduce below an article appearing in ET edition dated 4th Nov’16. This article highlights alternative investments for Fixed Deposits. This is exactly what I had advised though about a year back. The idea is, one needs to preempt the happening and act accordingly in order to maximize the returns. […]
Switch to Accrual Debt from duration Dear Friends, A brief Synopsis of what has happened in the past: Since Jan’2015, RBI has reduced interest rates to the tune of 150 basis points. Going forward, the interest rates are bound to soften further. But looking on to the current bond prices, I believe that the prices […]
Investment us 80c Dear Friends, Budget 2015 raised exemption u/s 80C to Rs. 1.50 lacs per annum. This presents a great opportunity to individuals to invest and save tax. But the question is which is a better investment vehicle for sec 80 C : While each instrument has its own merits and demerits, the right […]
Dear friends, When a movie is made and say the Producer Director is Raju Hirani, Actor Aamir Khan, Music Director –Rehman, etc etc …the probability of the movie being a hit will be high. Why!! Simply because the people behind the same, are talented, true to their vocation, and the intent is there to make […]
Dear Friends, In Feb’2014, GOI came out with Tax-free bonds bearing an Interest rate of up to 8.90% for 15 yrs bond. With the decrease of 50 Bps in interest in FY 2015 and further downtrend, it is expected that this year Tax-free bonds would be issued in the range of 7.75 to 8.00% interest. […]
(This Article is exact reproduction of my earlier article dated 25th May’15. There has been no material change in my thoughts except the fact that the interest rates have been reduced further by 25 BPS. Please read the figures accordingly.) Dear Friends, In Feb’2014, GOI came out with Tax-free bonds bearing an Interest rate up […]
