In TMFs, there is a defined maturity date, on which the fund will mature and money will flow back to investors. Not to forget, the tax efficiency in any debt…
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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. Before getting to the implication of the meeting of the Monetary Policy Committee (MPC), the…
Your Money: Interest Rates — We Are In A Neutral Zone Now
So far, the RBI has been on a rate reduction cycle. Gradually, as economic recovery gains traction, the RBI will change stance as it moves towards normalization of rates. To…
Avalanche Effect Focus On Information, Action
Investors must sift from the info avalanche to home in on the right decision. We all have our personal finance and investments to man. age, and with that at the…
How Target Maturity Funds Help Manage Risk In Debt Investment
SYNOPSIS One method of managing volatility risk is following hold-till-maturity (HTM). This concept can be practised by investing directly in bonds. On maturity of the bond, money flows back to…
How To Choose A Good Credit Risk Fund For Investment?
SYNOPSISThe worst phase of credit defaults in the history of debt mutual funds in India started in September 2018. A quasi-PSU, rated AAA, went down from AAA to D in…
How Target Maturity Funds Can Be Good Investments During Rising Interest Rates
Interest rate risk is absent, if funds are held till maturity. There is consensus that interest rates are going to inch up gradually. It is a matter of time. When rates rise,…
Have We Seen Too Many NFOs?
There were several media reports which say the MF industry has been banking on the current rally by launching NFOs. Of late, the Rs.36 lakh crore MF industry has seen…
How You Should Choose From Among The Available AT1 Bonds
No bank has AAA rating for these instruments Ever since the default in AT1 (additional tier 1) perpetual bonds of Yes Bank, there has been lot of discussion on the…
In Unusual Times, Some Interesting Trends In Credit
SYNOPSISIn retail loans, credit cards were worst affected, with NPAs shooting to 3.5% in FY21. In an earlier article, we had discussed the improvement in credit rating ratios (upgrade-downgrade ratios)…
Debt Funds: Lessons From Franklin Templeton Episode
Investors are now being selective in choosing credit-risk-oriented funds as liquidity in those papers rated ‘AA’ or lower is not as good as ‘AAA’. It has been one year and…
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. Arbitrage funds are receiving substantial inflows of late, which is good from an…