Sep 30, 2022 02:36 PM IST

RBI rate hike leaves bond street with a lot of comfort but little direction

The 50 bps hike in the repo rate came as anticipated and the accompanying commentary didn’t veer from the expected script. But the RBI governor didn’t offer clear guidance for the coming months either.

The decoupling theory isn’t cutting ice with the Indian bond market yet

While domestic liquidity and interest rate outlook would be the driver for Indian bonds, global events will continue to have an overarching effect

MC Explains | Why India should pursue inclusion in global bond indices

Several issues impede India’s inclusion in global bond indices, such as the capital gains tax policy.

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.

It's time to be measured with your fixed income assets as RBI hikes repo rate again

You should avoid taking any extreme view on your fixed income portfolio. If the yields on long duration bonds move up, then there will be marked to market losses on these bonds as well as on debt fund schemes investing in them.

Debt mutual funds see Rs 92,248 crore outflow in June on uncertain macro environment

This comes following a net outflow of Rs 32,722 crore in May and an inflow of Rs 54,756 crore in April, data available with Association of Mutual Funds in India (Amfi) showed.

Review: Edelweiss Broking NCD. Should you invest?

As interest rates rise and bond yields go up, non-convertible debentures are set to become attractive. But keep an eye on the company’s credit rating

Why India needs retail participation in fixed income markets, and how

As things stand, no taxpaying investor should consider saving via direct investments in any fixed income instrument, including in government securities. Instead, she would be much better off investing via a debt mutual fund that undertakes identical investments, notwithstanding the added fund management fee 

Why income may not be fixed in fixed-income funds

Fixed income funds or debt funds are typically used to reduce volatility in your portfolio. That doesn’t mean that your returns are guaranteed. There’s a big difference

Why are FD rates low despite RBI rate hikes?

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.

Date with debt funds: Taking a tough call amid soaring inflation, rising policy rates

Investing your hard-earned money in fixed income space is a tough call, given the anticipation of higher interest rates going forward

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.

Debt markets race ahead of RBI and signal a rate hike. How should you handle your debt portfolio?

Don’t touch your existing debt funds, say financial planners. But if you want to invest incremental money, deploy slowly

Two fixed income investments that outshine low interest options

In the current inflationary scenario, locking in rates for long term is not a wise scenario and the short term rates are not at all remunerative.

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.

Rates to rise; time to tap low-duration funds

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.

Why EPF is still a winner despite lowest rate in over four decades

The EPFO has announced lowest interest rate in over 40 years, causing heartburn among EPFO’s 60 million members, or salaried employees. However, EPF as well as its extension VPF continue to be indispensable as retirement planning tools.

Status quo on interest rates: Should you go for small saving schemes?

If you have been following the bond market, then you would have noticed that the bond yields are rising across the world. But do not wait for higher rates on small saving schemes.

Received FMP maturity proceeds? Here are options to reinvest the money for better returns

Investors in fixed maturity plans typically look for relatively less volatile returns than those offered by open-ended bond funds

Despite government’s U-Turn on small saving interest rates, don’t rush for PPF before April 5

Many investors invest entire lumpsum in PPF between April 1-4 because of the way interest is calculated. But a closer look at this strategy reveals it does not make much difference.

Interest rate cut U-turn: Should you continue with small savings schemes?

By reversing the rate cut in small savings, investors have got a relief. That doesn’t mean you should rush for them rightaway. Allocate your investments across asset classes and use small saving schemes, smartly, especially NSC and Postal Time deposits.

Explained: Government bond yields and impact on equity markets

One of the ingredients of equity valuation is the cost of capital which is directly linked to government bond yields. So if the bond yields rise, the implied cost of capital increases.

Coming soon: Retail investors can directly invest in government securities with RBI

After lukewarm response to its earlier scheme to allow small investors to invest in government securities through stock exchanges, the RBI now allows direct investments.