Bonds & Deposits Archives - Page 3 of 7

Prime Debt outlook 2023: Handling a rate pause

Bonds & Deposits

Prime Debt outlook 2023: Handling a rate pause

After bungee jumping off a cliff, it is good to wait for the adrenaline rush to wear off. Indian bond markets are in exactly this situation now. After falling sharply as rates rose, bond prices are pausing to take a breath. In our debt outlook last year we expected rates to continue their upward climb and recommended strategies to play this. During the course of 2023, we think interest rates could top out and stabilise. We tell you what this will mean for your debt portfolio.

Aarati Krishnan January 8, 2023 20 Comments

A privately placed bond for high-risk investors.

Bonds & Deposits

Prime Bond recommendation: A privately placed bond for high-risk investors

With better credit offtake and improving upgrades in credit rating, at PrimeInvestor, we think it may be time to selectively take calls on bonds that compensate well for the risk taken. In this report we cover one such privately placed bond.

N V Chandrachoodamani December 25, 2022 3 Comments

Bonds & Deposits

Prime Bond recommendation: An AT1 bond with high yield

At PrimeInvestor, we took an ultra-conservative approach to debt investments during Covid and just after it. But with economic recovery taking root, interest rates rising and credit offtake improving, we believe investors can shoot for higher yields by taking on some credit risk. Perpetual bonds from banks with sound financials are one option, offering good reward for risks taken. We are covering one such bond here.

Aarati Krishnan December 1, 2022 2 Comments

The search for high interest rates: where to draw the line

General

The search for high interest rates: where to draw the line

Low interest rates and rising inflation are a dilemma for savers. There is a constant conflict between risk and return. As far as the retail investor is concerned, he looks forward to being ‘protected’ by the regulators. Financial literacy does not come easy and ninety percent of us would not know the difference between a fixed deposit and a debenture. And we would be forgiven in thinking that the term ‘secured’ debenture or bond means that every rupee we invest is safe! But where should we draw the line in the search for high interest rates?

R Balakrishnan November 27, 2022 6 Comments

Bonds & Deposits

An active strategy for fixed deposits

It is the fashion for personal finance gurus and social media influencers to begin their talks by dissing FDs. FDs are dumb investments, they say, before urging you to migrate to equities, or exotic things like options trading or covered bonds.
But the humble fixed deposit can serve a very useful purpose in your portfolio by acting as a source of ready liquidity and acting as a bedrock for your safe money. That’s why we have Prime Deposits, our list of FD recommendations. It is quite possible to generate positive real returns on your FDs through an active strategy. But can an active strategy really go with FDs? Of course! Here’s how you can do it.

Aarati Krishnan November 17, 2022 10 Comments

Bonds & Deposits

Are SDLs safe? And other questions

Whenever we recommend SDLs, our readers raise many queries like “Are SDLs safe?” and more about the difficulty of choosing them. In this FAQ, we try and address all of your niggling doubts about SDLs.

Aarati Krishnan October 30, 2022 18 Comments

Bonds & Deposits

Should you invest in NHIT’s NCD offer?

With interest rates on fixed income options hitting rock-bottom in recent years, debt investors have been starved for reasonable yields. This is perhaps why the issue of Non-Convertible Debentures (NCDs) from National Highways Infra Trust (NHIT NCD), offering a yield which is a tad over 8%, is seeing such enthusiastic reception from investors, bond platforms and some advisors too.

Aarati Krishnan October 17, 2022 16 Comments

Bonds & Deposits

Have short term money to park? Here’s a cast iron option

Lately, it is not just India’s stock market that has been hopping all over the place like an impatient child. The bond market has been doing it too! India’s 10-year government bond yield, which sets the benchmark for all other debt instruments, climbed vertically from 5.8% in July 2020 to 7.61% in June 2022. But after that, it has been unable to make up its mind on whether to climb higher or pause for breath.

Aarati Krishnan October 6, 2022 15 Comments

How are deposits, bonds and debt funds taxed?

Taxes

How are deposits, bonds and debt funds taxed?

Deposits, bonds and debt funds are great ways to diversify one’s portfolio. But the taxation on these instruments can decide whether an option is attractive or unattractive on a post-tax basis. Taxation, though varies across instruments and can be quite complex. The fact that not all debt instruments are taxed in the same way compounds the decision making dilemma on which option to choose. This write-up will break down the taxation aspect of popular debt instruments for resident individuals.

Pavithra Jaivant September 8, 2022 6 Comments

Prime Review: TN Power Finance and Infrastructure Fixed Deposit

Bonds & Deposits

Prime Review: TN Power Finance and Infrastructure Fixed Deposit

When interest rates on bank deposits hit rock-bottom in the last few years, the fixed deposit (FD) programme from Tamil Nadu Power Finance and Infrastructure Corporation (TNPFIC) turned quite a hit. This NBFC owned by the Tamil Nadu Government offers high interest rates of 7-8% on FDs and has a friendly online interface, making it very popular with fixed income seekers and seniors. We have received a number of queries from many of you, about this deposit.

Premium article available only to subscribers.

Aarati Krishnan September 6, 2022 1 Comment

Bonds & Deposits

6 ways to identify deposit scams

Some folks still have a fatal fascination for ‘better-than-FD’ returns advertised by unregulated entities – whether it is cryptocurrency exchanges offering interest rates of 12-14% on staking one’s crypto holdings, or peer-to-peer lending platforms promising you a 14% return from becoming part of a lending club. Informal entities ranging from unregistered chit funds run to the street corner jeweller tempt you to ‘deposit’ money with them promising high returns.

Aarati Krishnan August 21, 2022 7 Comments

Higher rates offer a window of opportunity for NRIs

Bonds & Deposits

Higher rates offer a window of opportunity for NRIs

If you are an NRI, the chances are that you usually keep an eye out for places to park your surplus earnings in India that are safe, will protect you from exchange rate changes and fetch a respectable return. You probably already have NRE deposits and FCNR(B) deposits, the bank FD equivalents for NRIs. But did you know that there have been recent regulatory relaxations by RBI that give you a window of opportunity to lock into higher rates on these tried and tested savings tools? Here is a closer look.

Pavithra Jaivant August 9, 2022 2 Comments

PrimeInvestor - Articles and Reports

Prime Debt outlook 2023: Handling a rate pause

Prime Bond recommendation: A privately placed bond for high-risk investors

Prime Bond recommendation: An AT1 bond with high yield

The search for high interest rates: where to draw the line

An active strategy for fixed deposits

Are SDLs safe? And other questions

Should you invest in NHIT’s NCD offer?

Have short term money to park? Here’s a cast iron option

How are deposits, bonds and debt funds taxed?

Prime Review: TN Power Finance and Infrastructure Fixed Deposit

6 ways to identify deposit scams

Higher rates offer a window of opportunity for NRIs

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