Large-scale bond buying by central banks will lead to global bond yields trading at lower levels
Maximising returns may no longer be the guiding principle, with the focus more on protecting capital with reasonable returns whether in equity or debt markets, say experts
Equity markets, in the long run, are a proxy for human ingenuity and innovation. As long as you believe in this core premise— the simple answer remains ‘this too shall pass’!
Investors’ confidence is coming back, especially in the second half of the CY2019
Bharat Bond ETF will help in diversification of investors’ portfolios as the ETF will only invest in bonds issued by select PSUs
Experts advise investing only in select names, given the elevated risks relating to the deteriorating credit environment and tight liquidity scenario being faced by NBFCs.
Bond fund investors should pick a scheme with a duration mandate that is in line with the time frame the investor intends to hold his investments
The success of this initiative will depend on the extent of operational flexibility, awareness among investors and liquidity in G-Sec markets among other factors.
After the IL&FS debacle, NBFCs have chosen to raise money through NCDs.
Residual maturity is the time pending for the bond’s maturity.
Investments in employees provident fund earn a higher rate of interest than bank fixed deposits and also taxfree interest.
Retail investors should invest in the top notch names such as HDFC, LIC Housing Finance or the bonds issued by central government undertakings since there is a little credit risk, says Vikram Dalal, Founder of Synergee Capital Services
To grow the lump-sum investment of Rs 10 lakh to Rs 1 crore, it will take approx 20 years assuming an average portfolio return of 12 percent.
If interest rates fall, prices of debt securities rise.
After years of volatility, gold makes a comeback, fixed income investors look ahead
Hopefully, with spread of investor base, with more people holding G-Secs, the requirement of trading and hence liquidity will start developing.
Individuals with low-risk appetite can consider lock-in rates at current level.
RBI Governor hinted in the post-policy media conference that if the upside risks to inflation projections do not materialize, there is scope for review of the policy stance sometime going forward.
Look beyond the rate of return while picking an FD.
Longer maturity bonds or bond funds may be volatile for some more time.
It is not only about pushing companies to the bond market but also attracting more investors that will really deepen the market.
A recent report from HSBC Global Research sees two policy rate hikes of 25 basis points each in 2018
If the realized inflation for next year is closer to the expectations policy makers then won’t be in a hurry to hike interest rates as real rates will be around 1.5% which is reasonable to support economic growth.
Market reaction, in terms of yield level, has been decisively positive
Bond prices are inversely linked to interest rates. When interest rates go up, bond prices fall and vice versa.