FIXED INCOME


Raj Pradhan Raj Pradhan 09 November 2015
The 10-year benchmark G-Sec yield has increased by nine basis points (bps) in the last fortnight to end at 7.64% on 30th October. Even after the 50bps cut in repo rate by RBI in September, the 10-year G-Sec yield have remained steady at 7.64%, primarily on sustained selling pressure from...

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Raj Pradhan Raj Pradhan 30 October 2015
Be Mindful of Capital Gains Tax   Tax-free bonds have caught the fancy of investors in the current market, as Reserve Bank of India (RBI) has been cutting the repo rate since January 2015 with a cumulative reduction to 125 basis points (bps). While the coupon rates for the recent...

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Moneylife Digital Team 29 October 2015
Sustained selling pressure from banks and corporates and net supply are the reasons as to why G-sec yields are not coming down despite a 50 bps rate cut, says a State Bank report   Even after the 50 basis points (bps) cut in repo rate by the Reserve Bank of India (RBI) last month, the...

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Moneylife Digital Team 26 October 2015
The 10-year benchmark G-Sec yield, has marginally risen to end at 7.55% on 16th October. The government may link the interest rate offered on small saving schemes to bank deposit rates of similar tenure or to a market-linked benchmark. Currently, the interest rates on small saving schemes are...

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R Balakrishnan R Balakrishnan 06 October 2015
Bond mutual fund schemes invest in debt securities. Tips on how to evaluate the soundness of such securities   The investment by JP Morgan Mutual Fund in the bonds of Amtek Auto, the subsequent downgrade of the firm’s credit rating and the fallout for investors getting stuck with...

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Moneylife Digital Team 02 October 2015
It pays to be careful when investing in company instruments, despite the lure of a ‘little more’   Although corporate fixed deposits (FDs) offer interest rates that are higher than on bank FDs, they are unsecured—a feature that the Companies Act, 2013 has half-heartedly tried to...

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Raj Pradhan Raj Pradhan 22 September 2015
Tax-free offer of 7.36% to 7.62% may fail to attract retail investors even if it is a good option for those in the higher tax bracket, investing for long-term   NTPC tax-free bonds kick starts retail investor tax-free bond offerings after a waiting period of 18 months. In 2013-14,...

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IANS 09 September 2015
Highlights of the two gold schemes approved at a cabinet meeting chaired by Prime Minister Narendra Modi:   Key points of gold deposit scheme   - Minimum amount of gold set at 30 grams   - The 331 designated centres to test and collect gold from...

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Moneylife Digital Team 07 August 2015
These are not a bad option for ultra-conservative investors   Mutual fund (MF) managers are investing in government securities (G-Secs) with expectation of further rate cuts by the Reserve Bank of India (RBI). MF exposure to G-Secs was less than 8% of assets under management (AUM) in...

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Moneylife Digital Team 24 July 2015
Several public sector companies get green signal for raising funds. But will investors be attracted?   Get ready for tax-free bond issues in the primary market, once again. Several public sector companies have got a green signal for raising funds, but will the investors find these a...

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Moneylife Digital Team 26 June 2015
Tax-free bonds from government companies of rating AAA or AA+ are still a good option   Tax-free bonds from government companies of rating AAA or AA+ are still a good option for fixed income, for those in higher tax bracket of 20% or more, since FD rates are on a...

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Debashis Basu, Raj Pradhan  and   Jason Monteiro Jason Monteiro 06 February 2015
Interest rates are expected to decline. If so, which fixed-income products would be best suited for you?   On 15th January, the Reserve Bank of India (RBI) made an early morning cut in the repo rate from 8% to 7.75%. It took the markets by complete surprise; considering that it...

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Moneylife Digital Team 18 November 2014
Finance minister Jaitley said, Kisan Vikas Patra would help poor gullible investors to channelise their savings towards trusted government scheme instead of some ponzi schemes, where hard earned savings disappears   With the objective to raise small savings in the country, the Indian...

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Jason Monteiro Jason Monteiro 22 August 2014
Is it a good time to buy debt schemes? Which are the better ones? How to deal with the recent changes in taxation   Mutual fund houses and distributors were actively promoting debt schemes as a better alternative to bank fixed deposits (FDs) when interest rates were flat and debt...

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Moneylife Digital Team 14 August 2014
Moneylife’s online survey on debt mutual funds shows that 65% of the respondents said they invested in these schemes to take advantage of the tax benefit   Moneylife conducted an online survey about how investors viewed Fixed Maturity Plans and Debt Schemes before and after Budget...

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Jason Monteiro Jason Monteiro 08 August 2014
Debt schemes are supposed to have turned unattractive after capital gains tax rules were changed in the Union Budget. Are you sure? Surprising answers inside   Over the past few years, fund houses have been heavily promoting debt products, like income schemes, fixed maturity plans...

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Dr SD Israni 24 April 2014
At last, some sensible policies governing this pecularly Indian investment product There was a time when small investors flocked to companies to invest in their fixed deposit (FD) schemes, since companies used to pay higher rates of interest compared to banks. However, over the years,...

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Not many people realise that there are better options than bank fixed deposits. Here are some of the little-publicised options Avinash Deshpande (name changed) is a traditional saver in nationalised bank fixed deposits (FDs). He works in a software company, earns a good salary and so is...

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Moneylife’s online survey on FMP shows that 25% of the respondents do not invest in FMP. Those who are aware of the tax benefits and decent returns do not shy away from FMPs. What stops others? Lack of clarity and dearth of reliable advice is to blame Moneylife online survey on fixed...

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Raj Pradhan Raj Pradhan 24 February 2014
March is the peak season for offers of FMPs. For the first time, backed by comprehensive analysis of data not in public domain, we present an FMP guide to invest, calculate returns and ways to ensure that tax is saved by double indexation March is a busy season for fixed maturity plans...

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