G-Sec STRIPS offer more than bank FDs with security
“STRIPS offer about 100-150 basis points more than bank deposits and offer high safety and there is no reinvestment risk,”.
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It’s time to be measured with your fixed income assets as RBI hikes repo rate again
However, the experts warn retail investors against such adventures. “Do not jump into long term bonds or long duration debt funds assuming the rate hike cycle has ended.
Tax-free bonds vs bank FDs: Which is better suited for you?
For High Net Worth Individuals, I will suggest Tax free bonds and Target maturity Plans (Bharat Bond ETF etc). Tax Free bonds will fetch 5.5 per cent to 5.55 per cent returns in Bharat Bond ETF will give 7.25%.
High tax payers can lock into tax-free bonds, earn more than bank FDs
“High safety, no put call option and opportunity to earn higher post-tax returns than bank deposits are drawing investors to these bonds,”.
Wary of equity market, investors turn to PSB perpetual bonds
“Mumbai: Rising inflation is seeing investors ducking from the storm in equities market to safe haven fixed-income investments and they prefer longer-dated perpetual bonds sold by state-owned banks with higher yield than similar maturity government securities and popular mutual funds”.
Investors turn to G-Secs as yields surge, small savings rates stay put
“Government bonds carry sovereign ratings, there is no credit risk, high liquidity and returns are higher than traditional small-savings products and bank deposits”.
Longer-tenure G-secs Gaining Popularity over PSU Bonds, State Development Loans as heading.
Mumbai: Affluent investors allocating money to fixed income instruments are increasingly buying government securities(Gsecs) over AAA-rated public sector undertaking(PSU) bonds and state development loans(SDL), as the difference in returns has narrowed down and is at a historical low.
“We have never seen such narrow spreads between Gsecs and AAA-rated PSU bonds or SDLs. We are seeing a huge demand for Gsecs from rich investors since they are available in longer tenures, carry the highest safety and are more liquid,” said Vikram Dalal, MD, SynergeeCapital.
Rich investors turn to long-term government bonds
“Rich investors are showing interest in government papers maturing in 2045, 2050 and 2060,”. “Many HNIs want a regular income for their next generation with no credit risk or put/call option.
Should You Invest In Credit Risk Funds Now?
We will have to wait and see if there are any major NPA issues in the books of non-bank financial companies (NBFCs) after the additional six-month window given to NBFCs to comply with asset classification norms, is over.
PCHF bonds offer a chance at double-digit returns
Mumbai: Investors looking to earn double-digit returns from their fixed income portfolio can consider an investment in the nonconvertible debentures of Piramal Capital and Housing Finance.