A new fund offer (NFO) of Bharat Bond ETFs will be open for subscription from July 14, 2020 until July 17, 2020. The first series of Bharat Bond ETFs was launched in December 2019. I had written about the first tranche in detail here. The product structure remains the same. The new series of Bharat Bond ETFs are target maturity bond ETFs i.e. the Bharat Bond ETF will mature, … [Read more...] about Bharat Bond ETFs: Second Tranche opens July 14: Should you invest?
You must learn to live with it. And I concede FD rates have gone down sharply. I copy the current FD rates from the SBI website. A common refrain is, “Fixed Deposits are giving nothing. I want to invest in debt mutual funds to get a better return”. Why? Because when we compare past 1-year returns of a debt mutual fund with the current 1-year Fixed deposit rates, … [Read more...] about Bank FD rates have gone down sharply. What should you do?
RBI has announced the launch of the Government of India Floating Rate Savings Bonds. The bonds shall be available for subscription from July 1, 2020. In this post, let us discuss the new floating rate bonds in detail and answer the following questions. What are the important features?How is it different from the RBI 7.75% Savings Bonds?How does it compare against similar low … [Read more...] about Govt. of India Floating Rate Savings Bonds (2020): All you need to know
Over the past few weeks, we have tested investment ideas and compared the performance against the bellwether indices such a Nifty 50. In some of my previous posts, I have Compared the performance of Nifty Next 50 against Nifty 50.Considered the data for the past 20 years to see if the Price-Earnings (PE) multiple tells us anything about the prospective returns. It does or … [Read more...] about Nifty 50 Equal Weight Index: How has it performed compared to Nifty 50?
The car manufacturers have been badly hit by the lockdown, most reporting zero sales in the month of April. The cashflows of their potential customers are also possibly stretched and uncertain. There have been salary cuts and layoffs. Not good. But there is a positive too. The desire to avoid public transport can increase demand for two-wheelers and cars. As the … [Read more...] about Step-up Loan, Balloon Repayment: Interesting Car loan schemes from banks
Nifty Next 50 index funds have gotten popular over the last few years. As expected, the index caught the fancy of investors on the back of strong performance from 2014 until 2017. However, not many investors benefited from this because there were not many index fund options to invest in this index. Not that the funds would have attracted money because the AUM chases the … [Read more...] about Nifty 50 vs Nifty Next 50: Performance Comparison
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched in May 2017 to provide a long-term income option for senior citizens in the country. This assumes importance in the wake of the low-interest rate scenario we find ourselves in. Fixed deposits are getting renewed at lower rates. This poses problems to those senior citizens who rely on interest income to meet regular … [Read more...] about All you need to know about Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Many investors are worried about their debt fund investments. You cannot fault investors. Their hard-earned money is at stake. Moreover, when some of the AMC CEOs are busy peddling their credit risk funds despite the Franklin mess, it is not easy to trust the industry. Your confidence is likely to suffer. How do you build you fixed income portfolio without debt mutual … [Read more...] about Using ULIPs to build our Fixed Income Portfolio: A Smart Strategy?
Many of us invest in aggressive hybrid funds (balanced funds) to earn good returns with lower volatility. We believe that the equity portion will provide the upside and the debt portion will cushion the downside. Over the long term, this may result in better absolute returns than even a pure equity fund (or at least better risk-adjusted returns). Has your hybrid fund … [Read more...] about Has your Balanced Fund (Hybrid) delivered value?
Franklin debt mutual fund fiasco has many debt MF investors worried and rightly so. It is their hard-earned money at stake. The worry is that the corporate bonds in the portfolios of their schemes may experience default. We discussed in the previous post how you can check if your debt mutual funds are safe. However, as an investor, your concern shouldn’t be limited to just debt … [Read more...] about The Credit Risk in your Hybrid Mutual Funds