“THIS IS THE RIGHT TIME TO INVEST IN LONG TERM DEBT FUNDS”
Dear friends,
On 28 th Feb’2014, it was advised that the time to invest in long term debt funds has
arrived.
Last 2 months, the yield in Long term debt funds has been 14% app(annualized).
I would like to reiterate that all the macro points to topping of interest rate yield
curve and it is expected that in months to come the interest rate cycle will reverse
triggering massive jump in bond prices and double digit returns in bond funds.
1. Consumer inflation trend has eased.
2. CAD improves
3. Rupee has stabilized
4.FII debt flow stabilized
5. Attractive bond valuations
Source :Bloomberg
To summarize:
All indicators point towards lower interest rates in CY 14
This is the right time to take a position in long term debt funds.
Ideal for investors with 18 months + view point
With warm regards,
Samrendra Tibarewalla, CFPCM
PS: You are the best manager of your money. Please take informed decisions only.
Disclaimer : The author in no way will be held responsible for losses incurred on the basis of above recommendations. The investors are advised to take independent decisions after verifying all facts.