Investors in debt mutual funds may do well to keep horizon short
As current account deficit widens due to higher oil prices, interest rates are expected to move further up. The 10-year benchmark could trade between 8.20 and 8.35% in the next three months.
Fixed maturity plan or short-term bond fund — what should fixed income investor choose?
Short-term bond yields are attractive and most of these bonds charge low expense ratios. As they are open-ended schemes, you can sell out if need be. That makes short-term bond funds a lucrative investment option.
Raining retail bonds: Should you invest?
Last two years, none of the debt mutual fund schemes have performed up to the mark. Investors have switched to retail bonds as they seek to earn higher interest income regularly.
Rising corporate deposit rates likely to move further up
More non-banking finance companies are likely to come with higher rates as they jostle to tap the retail money.This will also help those companies to expand retail reach, a key business driver for them.
Shriram Transport targets Rs 5000 crore via bonds
Retail bonds are coming back to the market with investors showing encouraging response to quality papers. Shriram sounds a credible name among retail investors who have already tasted its corporate fixed deposits with no default record.
Rates rising, investors dump income funds for FDs, bonds
Performance is dismal for income funds in the past one year. The value erosion is higher as these funds invest heavily in long maturity papers, which bled in past months.
Should investors look at retail bond issuances now?
As interest rates are expected to rise, it makes sense for investors in the lower tax slabs to invest in fixed deposits maturing in one year. Investors will also get an opportunity to roll over their fixed deposits at a higher rate
How to earn higher rates from deposits
Competitive interest rate increases by banks and non-banking finance companies across the spectrum has seen rate of return peak to its highest in about two-three years putting the smile back on savers.
Perpetual bond withdrawal hits some investors
The recall of perpetual bonds by financially crippled banks may have been a blessing for investors who would have had to bear losses if the banks had stopped paying interest.
Who are helping states to borrow money?
While the rates offered are much higher than traditional bank deposits, the revised 7.75% norm too has helped add a new set of investors for these sovereign-like instruments with little risk of defaults