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…
Posts TaggedInvestment Banking
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,…
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…
Want Fixed Income? Try Arbitrage Funds, They Attract No Dividend Distribution Tax
Arbitrage funds attract no dividend distribution tax and no LTCG tax for holdings beyond one year The term arbitrage refers to simultaneous purchase and sale of assets to profit from…
Know The Tax Treatment Of Gains On Bonds Before Investing
Bonds offer interest and capital appreciation to investors. It is better to know the basis of taxation and the rate of tax. Returns from investments in bonds come from interest…
Long Bond Funds Can Be Volatile, Avoid If looking For Stable Returns
Long bond funds are more volatile in performance. With the 10-year benchmark security trading around 6.4%, there is some scope for easing of rates, but not to a significant extent…
How To Earn Better Post Tax Returns Using Bond Funds
This article explains how bond funds can be used to optimise post tax returns on fixed income portfolios. For investment decisions, tax efficiency is something investors always look at. Though…