May 2022

Four passive debt funds to invest right now

Not so long ago, if debt investors in India wanted to get a 7% plus return, they had to go to post office schemes with (poor service and) a long lock-in period like the PPF or GOI Floating Rate Savings Bonds with a 7-year lock-in period. These options, apart from the difficulty of accessing them, required investors to sacrifice liquidity for returns. 

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Insurance Review – Activ Secure Critical Illness Plan by Aditya Birla Health Insurance Co. Ltd.

We have shortlisted a set of critical illness plans, which we will start reviewing. We begin with the Activ Secure Critical Illness Plan by Aditya Birla Health Insurance, which we think is a good plan for high-income earners.

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2 safe options to earn 7.4%

India’s market interest rates have been rising very swiftly after the recent mid-cycle rate hike by the RBI.  In our earlier analysis we had highlighted that bonds issued by the Central and State governments should now be your first choice as and when primary auctions crop up, as they offer the best combination of low risks with high yields currently. 

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Prime Fund Recommendation: A fund for the opportunist in you

Some funds have a clear fundamental strategy that shows in their portfolio construct. When that strategy pays off, they deliver. But many good-to-hear strategies have failed for many mutual funds in recent years. This is partly due to fast-shuffling sector preferences in the market and partly due to high stock weights in the index that funds struggle to replicate. As a result, you see them underperforming key indices. 

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IPO Review: LIC IPO – 3 factors to consider before subscribing

The Indian government, deciding to take its chances with market moods, has launched the long-awaited IPO of Life Insurance Corporation of India (LIC). This is entirely an offer for sale by the government to offload 3.5% of its holdings (2.21 crore shares) to the public, at an offer price band of Rs 902-949.  LIC will not receive any proceeds from the sale. Retail bidders will get a Rs 45 discount while LIC’s policyholders will get a Rs 60 discount. 

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2 G-Sec bond options to invest right now

About 10 days ago, we alerted you about the upcoming opportunities you will have in the bond market as we move up the rate cycle. Today, we are recommending 2 government securities (G-secs) that are out as auction in the RBI Retail Direct portal. You might want to check if your brokerage has the option to buy these. 

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