Instead of only focusing on the tenure for which the best interest rate is available, investors should also focus on their own investment horizon.
Only investors with a higher risk appetite should enter these funds.
Those who cannot bear significant downturns (as much as 40 per cent) or have a short horizon should exit entirely.
If the gift is received from a relative, there is no tax implication. But if the gift is received from a non-relative and exceeds Rs 50,000 in value during a financial year, the entire value of the gift is taxable.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
'They can transition from short to long-duration funds when the yield curve normalises.'
Jain was the architect of Deutsche's investment banking business and placed one of his former trading heads, Alan Cloete, in Hong Kong as co-CEO for Asia Pacific in 2012.
Long-term investors should never stop their SIPs during market corrections.
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
This works only for longer-tenured ones such as income funds, as the element of interest rate risk is reduced.
Since MAAFs invest across multiple asset classes, they offer diversification.
Gilt funds make sense only if you want to take a tactical view on interest rates and are looking for a short-term duration.
'Starting an SIP now and continuing with it is likely to translate into high returns over the long term.'
'Do some profit booking and bring your equity allocation back to its original level.'
The slowdown in corporate revenue growth over the last one year has begun to reflect in India Inc's capital expenditure, or capex. The country's top listed companies are going slow on fresh investment in capacity expansion, in line with a deceleration in their top line growth. The combined fixed assets of the listed companies, excluding banking, finance services and insurance (BFSI) and the government-owned oil & gas firms, were up 10.1 per cent year-on-year (Y-o-Y) during April-September 2023 (H1FY24) - the slowest in 18 months - as against 21.1 per cent Y-o-Y growth in H2FY23 (October 2022-March 2023) and 11.6 per cent growth in the April-September 2022 period (H1FY23).
These plans are best suited for individuals with a lower risk appetite as they provide guaranteed benefits.
Interest income on fixed deposits and bonds, such as 8% Savings (Taxable) Bonds, 2003, is taxable under the head 'Income from other sources.'
The self-employed should invest in the National Pension System, a government-backed, low-cost retirement avenue where they can choose the mix of debt and equity that is right for them.
TMFs invest in a public index, so investors know beforehand which instruments the fund will invest in.
The year 2022 saw the Reserve Bank of India (RBI) start acting on the policy repo rate after a gap of two years. The six-member monetary policy committee of the RBI reduced interest rate sharply - by 115 bps - when Covid-19 struck in 2020. In March 2020, days after the nationwide lockdown was announced, MPC in an unscheduled meeting reduced the repo rate by 75 bps, followed by another 40 bps in May. Status quo was maintained for the next two years since the May repo rate hike.
According to RBI data, it had 57 employees in India at the end of March 2012.
Highly-rated finance firms and housing finance companies are expected to benefit from the absence of Housing Development Finance Corp (HDFC) from the bond market once it merges with the HDFC Bank in early FY24. Post merger, the bond market is expected to become less crowded, which will ease fund raising conditions for other players in the field. It may perhaps also compress the spread for debt instruments floated by housing finance companies (HFCs) over 10-year government bonds, subject to demand and supply conditions.
Balanced advantage funds have the potential to earn superior risk-adjusted returns for the investor and offer a smoother investment journey.
In September, net equity inflows stood at Rs 6,609 crore, compared to Rs 9,152 crore in the previous month. In the last four months, this is the lowest net inflow tally seen by the equity category.
Enhancing your credit score is the key to improving loan eligibility and securing a favourable interest rate.
'For me, if I want to buy a house to stay, I don't care about indexation because I don't want to sell that house.' 'The only thing that matters to me as a buyer is that the home price should be within my reach.' 'Any market, when speculators and investors go out, it will benefit the middle class.'
Life insurers are launching these again. Invest if you are conservative.
'...over the long-term can be done only by investing in equities.' 'And during weak macros, one needs t1o allocate more than drawing it down, because they offer the best entry point.'
'Planning for the transfer of assets to the next generation is an important aspect of financial and estate planning.'
The Covid winter seems to be finally ending for debt-oriented mutual fund (MF) schemes as interest rates peak, especially for those that invest in shorter-maturity papers. In the past two months, shorter-horizon debt schemes - ultra-short, low-duration, and money-market - have together raked in net inflows of Rs 48,000 crore, the highest for two months since April-May 2021. These schemes invest in shorter-maturity papers ranging from three months to a year.
Interest rates on bank FDs have started coming down and rates on other fixed-income products will also decline. Investors should lock in to instruments offering higher returns.
'Banks will continue to increase FD rates to attract more deposits and meet the increasing demand for credit.'
More than 80 per cent of Indians live in districts vulnerable to climate risks. Among these, Assam, Andhra Pradesh, Maharashtra, Karnataka, and Bihar are the most vulnerable states to extreme climate events.
'If because of El Nino, the monsoon is affected adversely in the current year, naturally it will affect income projections and consequently Budget numbers.'
As yields rise, bond prices fall. Higher yields not only translate into losses for investors, it also pushes up borrowing cost for companies as well as government
Craig Chan, executive director and head of forex strategy & fixed income division (Asia-ex Japan), Nomura Singapore, in an interview with Business Standard's Rajesh Bhayani, shares his outlook on the dollar.
Stressed asset funds could offer higher returns than traditional fixed-income funds, but holding period will be longer due to the risky underlying assets
Domestic fund houses are of the view that the US Fed's status quo stance on rates is a positive indication for RBI to lower its lending rates.
Indian government bonds, particularly those of shorter maturity, strengthened sharply on Monday, as the collapse of the California-based Silicon Valley Bank (SVB) prompted investors to rush to the safety of American debt, leading to a decline in US bond yields.
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