The rising interest rates in India and in the USA are adding to the worries of the investors in stock markets.
The last week of CY2017 saw two developments in opposite direction. The 10 year benchmark yield moved up and recorded a high of 7.396 after the government announced additional borrowing to fund the fiscal deficit. This indicated an upward shift in the yield curve. The bonds and the bond fund saw losses on the marked to market basis as prices fell. While the bond street was worried about the volatility, the investors in the small savings schemes saw a cut in interest rates payable by 20 basis points. For the uninitiated the rates on the small savings schemes are reviewed quarterly.
While the interest rates are cut on the small saving schemes, do not expect the rates on home loans to go down. Harshil Mehta, joint MD & CEO of DHFL has made it clear that the interest rates on home loans have bottomed out. The rates may go up from here and it could be the best time to buy a home given the attractive deals on offer.If you are worried about the changing dynamics of the real estate sector and wondering if CY2018 will give you an opportunity to buy your dream home, read our take on various benefits homebuyers will enjoy in CY2018.
You can also get some insights about home buying in CY2018 here.
The rising interest rates in India and in the USA are adding to the worries of the investors in stock markets. Rising interest rates are seen detrimental to the stock prices. To manage the risks associated your portfolio, you should tap diversification. Instead of putting all your money in one asset class, it makes sense to stick to your long term asset allocation strategy. This improves your risk adjusted returns in the long term.
Start of the year is a good time to buy a insurance policy. Since you have some time on hand to compare and purchase the policy that serves your insurance needs, do consider buying an appropriate product. Here are some policies you can consider purchasing. But if you are planning to buy a pension policy offered by a life insurance company, do read about the tax treatment of the same.Happy investing and happy new year 2018.