April 2023 Economic Times
“Even though there is no increase in rates of PPF, it offers the highest post-tax return to investors”.
“Even though there is no increase in rates of PPF, it offers the highest post-tax return to investors”.
One should note that the NCD issue comes with a fair bit of credit risk as it is not rated AAA.
Each NCD will be split into four parts and each of the STRPPs will mature in three, five, seven and nine years.
“For the time being, investors should remain invested in short-duration debt funds with maturities up to three years as the yields are very attractive”.
The interest rates are not that attractive as some banks are now offering some 8 percent on their fixed deposits.
Diversify across sectors and match your investment horizon with paper’s tenor to avoid liquidity issues
The expectation of the interest rate cycle peaking can be a good entry point into long-duration products including gilt funds.
“Yields on tax-free bonds have not risen in the same proportion as interest rates”.
“Just keep in mind that tax-free bonds give you a regular income, but Bharat Bond ETF gives you everything at the end,”.
Visible returns, high quality portfolios, attractive yields, low expense ratio and liquidity are attracting investors to target maturity funds.