BUSINESS
Debt funds still work, even without indexation benefits
Inflows in debt funds continue despite the removal of indexation benefits, which was more of a psychological shock than hard fact.
BUSINESS
RBI holds interest rates: Who wins, who loses
Reset on home loan and other floating rate loans to be made more transparent. This measure would not make interest rates beneficial for you, but you would have more rights as a customer.
BUSINESS
Monsoon and markets: Rural demand, more than agriculture, is cause for worry
The full impact of the monsoon will be on the agricultural component of our GDP and inflation. But with a large swath of farm land under irrigation and with better reservoir levels, agricultural production appears to be in relatively good shape. The real worry is of a larger impact on inflation
BUSINESS
RBI MPC: Deposit and lending rates remain on a steady path; life goes on as usual, for now
Inflation projection lowered a tad, other projections remain same
BUSINESS
Enhancing fixed income returns when the yield curve is flat is not easy, but there’s a way out
If you want to take a duration call at this juncture, choose your options wisely.
BUSINESS
MC Explains | The difference between debt duration fund and duration call. Choose wisely
Debt fund investors will benefit once interest rates begin to fall. But nobody knows for sure when interest rates will start to go down, although market experts have begun making predictions. Your investment strategy will depend on your time horizon. And that is why you need to understand the difference.
BUSINESS
As RBI hits pause, we may have seen last of the rate hike cycle
Inflation is expected to ease, reducing chances of future hikes. The Reserve Bank of India will act on rates, if required, but that’s in the future.
BUSINESS
What message will the US Fed have for Indian investors?
With inflation still elevated and the banking sector facing a question mark, the world is looking at this week’s meeting of the Federal Reserve. But that doesn’t mean you should change your portfolio. Not yet, at least.
BUSINESS
Why are more investors investing in passive funds?
Mid- and small-cap funds present a different picture and, hence, investors still prefer actively-managed funds.
BUSINESS
RBI raises repo rate as expected, but does not hint at end to hikes
The possible reason the RBI’s Monetary Policy Committee has kept the door open for future rate hikes is that while inflation has eased, it is still higher than the RBI’s target. Meanwhile, post the latest hike, the portfolio yields of debt mutual funds will move up marginally.
BUSINESS
Budget 2023: Will FM Nirmala Sitharaman allow mutual funds to manage insurance money?
There’s merit in this Budget 2023 proposal, argues the writer. That’s because MF AMCs have the set-up and skill-sets in place, besides a plethora of options in terms of fund categories ― 11 equity funds, 16 debt funds, six hybrid funds plus index funds, theme/sector funds, etc. So, rather than the insurance company duplicating the efforts, it can simply be accorded access to.
BUSINESS
How safe is your bank? Remember, mental peace is important
Although considered to be generally safe, many banks have frozen depositors’ money because of weak financials. Private sector and cooperative banks are considered more vulnerable, but even IDBI was headed for trouble before LIC was made to buy it out. Clearly, interest rates on your bank fixed deposits are not the only criteria for an investment.
BUSINESS
RBI hikes interest rate as expected, and keeps the door open for further hikes
Fixed rate loans, referred to as MCLR (marginal cost-based lending rate) move up with a lag. On the other side of the table, the move stands to benefit depositors.
TRENDS
Good times are here for debt funds
The RBI is likely in the last leg of its interest-rate hikes and might start easing rates somewhere down the line. But higher portfolio yields on account of past interest rate hikes make debt funds suitable in the current environment.
BUSINESS
Why inflation is set to ease in six months. And why that’s good news for markets
The way inflation is calculated, last year’s prices of goods and services are just as important as last month’s. If last year’s prices are high, the inflation rate gets a breather in what is popularly known as the base effect. That’s where the good news for the markets lie in the coming months.
BUSINESS
As RBI hikes rates, expect higher interest on loans and deposits
Today’s policy rate action was per expectations. Going by statements in the press conference, future rate action will depend on how the inflation pans out. It is likely there would be another rate hike of 25-35 basis points on December 7, 2022.
BUSINESS
Corporate Bond Market: What it is, and how it is shaping up
Though there are various options to buy them, the issue with the corporate bond market is that there is not much liquidity. A regulatory framework, proposed by SEBI, enumerates many areas of improvement. As the market and issuers grow, corporate bonds will be a good investment avenue.
BUSINESS
How sovereign gold bonds are taxed: A complete guide
Although Sovereign Gold Bonds are tax-free if you hold them till maturity, they are taxable if you sell them before they mature. This, even if you sell after lock-in.
BUSINESS
Why investors need inflation-indexed bonds
But the design should be user-friendly. They ought to be liquid, with interim cash flows, and the tenure should not be long.
BUSINESS
RBI hikes interest rate to fight inflation, as economy gathers steam
The markets seemed to have mostly priced in the hike. Has RBI’s stance changed to `neutral’ already?
BUSINESS
Balanced Advantage Funds: Are they living up to the promise in the current volatile markets?
Dynamic Asset Allocation or Balanced Advantage Funds are supposed to be winners when markets correct. Till 12 July 2022, the average return from a basket of 25 BAFs, is minus 3.5 percent YTD. Though negative, it is better than negative 6.7 percent of Nifty YTD.
BUSINESS
Amid inflation threat and RBI’s rate increase, markets are positive
The benchmark 10-year government security yield eased after the RBI’s announcements and the stock market indices turned green.
BUSINESS
Fixed-income investments becoming attractive again
Returns from debt mutual funds have been muted for some time, but in the process, the accrual level has been moving up, which makes it relatively that much attractive.
BUSINESS
With yields up, will interest rates on small savings schemes rise?
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.
