BUSINESS
Good times ahead for debt funds, though returns are muted
Market-level fluctuations are part and parcel of any market, be it equity or debt or commodities. Price levels work in cycles and if you stay the course, you will reap your returns.
BUSINESS
When mutual funds merge fixed maturity plans with debt funds, what should investors do?
Since FMPs come with a specific timeframe, are close-ended, and of a specific credit quality, investors must first ensure the profile of the new schemes suit their investment objectives.
BUSINESS
Index funds: Check their tracking errors instead of returns
The lower the tracking error, the better the index fund and it’s getting better over time as index funds lower their expenses
PERSONAL-FINANCE
RBI holds the horses this time, but rate hikes a matter of time
For investors in debt mutual funds, yield levels on bonds in the secondary market had moved up after the Union budget on very high government borrowing projected for 2022-23.
BUSINESS
Why investing in a Bank Nifty fund makes sense when the economy revives
The Nifty Bank TRI has outperformed the Nifty 50 TRI in six of the last 10 years
BUSINESS
Despite hikes, RBI would still be supportive on interest rates in 2022
Five of the six MPC members voted on maintaining the stance as accommodative
BUSINESS
RBI maintains status quo, but continues to send indirect signals on tightening interest rates
As a guidance for debt fund investors, for incremental money, the RBI is set to gradually hike interest rates
BUSINESS
The risks of investing in cryptocurrencies: No legal backing, frowned upon by the RBI
Broadly, there is no regulatory support for cryptocurrencies, which exists for other investments in the form of a regulator and legal framework
BUSINESS
RBI keeps rates unchanged, but hints at normalization of liquidity surplus
It will take time for banks to raise deposit rates because they are sloshed with surplus currently
BUSINESS
How target maturity funds can be good investments during rising interest rates
Interest rate risk is absent, if funds are held till maturity
BUSINESS
Why arbitrage funds aren’t substitutes for liquid schemes
The appeal of arbitrage funds stems from the reasonably stable returns and their taxation as equity funds
BUSINESS
How ULIP taxation has brought in a level playing field with other investments
The thought process behind this amendment is that ULIPs should not be viewed as a vehicle only for investments or tax efficiency.
BUSINESS
CRISIL and ICRA highlight fewer corporate defaults: Should debt fund investors be happy?
Rating agencies make it clear, however, that the improvement was driven not so much by fundamentals, but due to measures such as loan moratoriums, RBI's liquidity injections and credit guarantee schemes.
BUSINESS
What debt fund investors must know about SEBI’s new risk class matrix
Fund houses now have to communicate the maximum risk they intend to take
BUSINESS
Credit risk mutual funds may have turned the corner
Barring a couple of schemes in the category, most credit risk funds have delivered reasonable returns in the last three years
BUSINESS
One year after Franklin Templeton episode: Loss of reputation, but repayments restore faith
Given that more than half the money has been paid back and all six debt funds are showing handsome returns, it is expected that in due course people will get back all the dues
BUSINESS
Why investors prefer open-ended debt funds over fixed maturity plans
There is a clear preference for open-ended funds among investors, as these are adequately liquid
BUSINESS
After SEBI’s ruling, can individuals directly hold AT1 bonds?
The market regulator's AT1 and Tier-II bonds ruling may have made it tougher for mutual funds to hold them, but it doesn’t stop individual investors from putting in their money there. The ruling, though, has underscored the risk levels, but not all AT1 bonds are a throwaway
BUSINESS
Explained: All about debt fund taxation and indexation
The holding period must be three years to avail indexation benefits. Only debt mutual funds are eligible for indexation benefits and not direct bond investments
BUSINESS
Budget 2021: What it means for interest rates and debt fund investors
The RBI would gradually withdraw the excess liquidity in the system and then reverse interest rates
BUSINESS
ULIPs or mutual funds? These factors can help you choose the better option
One of the reasons to not summarily reject ULIPs is that there is an inherent tax advantage
BUSINESS
How to choose the safest bond investments
Leading banks offer rates lower than AAA-rated corporate deposits, while there are other banks that offer higher interest. You can choose as per your comfort level
BUSINESS
RBI policy: Cheer for existing bond investments despite no rate cuts
Debt funds with maturity in the range of, say, 1-3 years are preferable for fixed income investors
BUSINESS
Can yield movements help investors assess risks of bonds?
In addition to checking the credit rating of a security, yield movements too can be useful signals for investors
