In India, the initiation of the committee process was expected to make policy rate decisions more scientific, more debated and bias-free. Before the formation of the Monetary Policy Committee (MPC),…
Posts TaggedCapital Markets
Why You Should Prefer Recommending Open End Debt Funds Over FMPs
Go for FMPs only if your client does not want volatility; else you should recommend open end debt funds. With the financial year nearing its end, many fund houses have…
Bond Investments Through Secondary Market Can Offer You A Better Deal
For retail investors intending to purchase bonds in lot size of say few lakh rupees, when there is no primary issue available or the primary issue is not matching up…
Go For Balanced Funds Or Risk-Adjusted Returns
Balanced Funds have equity allocation ranging 65% to 70% We tend to evaluate performance of funds by returns only, which is what is relevant for the investor. For analytical purposes,…
Should You Recommend Credit-Play Corporate Bond Funds To Clients?
IFAs can look at recommending a limited exposure, say 15% to 20% of the fixed income allocation of the portfolio to credit opportunity funds of well managed AMCs. The return…
Mutual Funds: How To Take Advantage Of ‘March Phenomenon’
In the money market, which is the market for very short maturity instruments, interest rates move up due to higher demand for money. The peaking of interest rates happen typically…
Credit Rating Agencies: Credibility And Accountability
There is a conflict of interest, globally, in the rating process as they are paid by the issuer and consumed by the investor. There are many headlines that pass by…
Preference Shares: Relevant For Fixed Income Investors
Preference shares depict features of bonds when one looks at risk-return profile. The term preference share evokes mixed reactions in terms of the risk-return profile, and is perceived as a…
Fixed Income Investment: Here’s How Investors Can Bond With The Best
Fixed income investments happen mostly through the mutual fund route, and rightly so, because of the advantages of accessibility and liquidity. Fixed income investments happen mostly through the mutual fund…
Should You Invest In A Bank Perpetual Bond?
The acceptability of these bonds is increasing gradually as more financial institutions and HNIs are taking exposure. We have seen a host of Bank Additional Tier I (AT1) Perpetual Bond…
Union Budget 2017-18: Road Remains Clear For Bond Investors
Advisers should emphasize on shorter maturity bond funds. The Union Budget holds some relevance for all the markets. From the perspective of investors in bonds and bond funds, the relevant…
FIIs Have Limited Relevance In The Indian Bond Market
SYNOPSISSome recent events are fresh in memory: demonetization and the US election result in November. The bond markets in US and India went on distinctly divergent directions The movement of…