Much to the surprise of the analysts, the RBI chose to raise the H2 FY2018 Consumer Price Index (CPI) path slightly by 10 bps to 4.3%-4.7%, to accommodate upside risks from crude prices, delayed impact of state Housing Rent Allowance (HRA) implementation and a sustained uptick in core inflation.
Bank FDs are one of the safest investment-cum-savings avenue which can help you get 7-9% return annually.
With low foreign ownership of securities and strong fundamentals Indian debt is preferred in the region.
Some moderation in the GDP growth in Q1 FY18 was expected. But the growth rate of 5.7% was a bit of a surprise.
A change in credit rating of a bond changes the yield the bond offers.
FMPs helps investors diversify investments across a portfolio of fixed income instruments.
The main purpose of investing in FDs is to enable individuals to earn a fixed rate of interest during the entire tenure of the deposit.
To make sense of the ‘conundrum’, there is one common factor driving markets: liquidity.
The rate of growth of the saved money (capital) should grow at a rate that is higher than the increase in expenses.
The ICRA rating rationale states that rating for the Basel III compliant Tier I bonds is four notches lower than the Basel III complaint Tier II bonds of the bank as these instruments have the following loss absorption features that make them riskier.
Nagarajan recommends investors to look at short term bond funds for investments at this point and time.
Many investors go into fixed income investment with eyes closed and ill prepared for any negative news
An InvITs is a pool of money for investing in infrastructure projects and distribution of the earnings to the unit holders.
ICICI Prudential Mutual Fund expects the liquidity in the banking system to remain ample which will further keep the spread between money market instruments and the overnight rate in remain range bound in the near to medium term
Till date, no long term instrument rated AAA by CRISIL has ever defaulted. For instruments rated AA, the average 3-year default rate is less than 1 percent, which means if you hold an instrument rated AA+ or AA or AA- for 3 years, on an average, the incidence of default has been less than 1 percent.
In India, the initiation of the committee process was expected to make policy rate decisions more scientific, more debated and bias-free.
Preference shares depict features of bonds when one looks at risk-return profile.
The acceptability of these bonds is increasing gradually as more financial institutions and HNIs are taking exposure.
If we observe the 3 previous Budgets presented by Jaitley, it can be clearly seen that the focus of team NAMO remains the same and this government means business as usual.
Though lending rates decline is good news for home loan buyers, decline in FD rates investors worry. With rates for larger deposits falling to 4% level retail investors will feel the pinch soon.
Going into 2017, we expect the ongoing volatility to continue for some time now. On the macro front, temporary disruption in cash transactions due to demonetisation is likely to hurt domestic demand for a couple of quarters, especially for discretionary items.
Investment analysts and advisors feel long-duration bond funds could show good returns in the coming months, with RBI likely to signal softer interest rates.
In a falling interest rate regime, traditional fixed deposits turn unattractive and you have to look for the right options.
There is a high likelihood of a 25 bps cut in the repo rate.