Desperate times call for desperate measures. Therefore, Indian fixed income investors may need to brace for a further plunge in interest rates in the coming months. • With rates cuts likely, lock into the options mentioned here, before March 31, 2020.
Given that the Nifty50 is busy taking out new lows with stunning rapidity, what are the Nifty levels at which the market gets really cheap, or attractive to invest lumpsums in? This strategy note is an attempt to answer this question
If you’ve got a 5-year-plus timeframe, equity is the way to go as we explained this week. And if you need money in the very near term, we’ve asked you to stay safe with fixed deposits, liquid funds, and ultra short-term funds. But what about the in-between timeframe? What are your options should you have a horizon of 2-3 years and want better returns that fixed deposits or low-risk debt funds?
Do you remember the last time that the Nifty fell over 500 points on a single day? Wondering if it was in 2008? No, because it never did in absolute value terms. That’s what makes March 9, 2020’s Nifty fall so scary.
RBI’s rescue package for Yes Bank, which will see SBI infusing capital into the bank to pick up 49 % of its equity, offers a breather to its depositors and shareholders. But one class of stakeholders who are set to take a comprehensive haircut valued at Rs 10,800 crore despite the bailout, are the holders of Additional Tier 1 (AT1) bonds in the bank.
When an equity fund is founded on the philosophy of value investing, seeks to reduce volatility through limited hedging and provides international flavour where such opportunities are not available locally, we call it an all-in-one fund. The fund we are talking of also has an expense ratio lower than the equity category average, considering its relatively small AUM size.
Just as the Indian stock market was taking a breather from recent worries about the slowdown, two new cases of Coronavirus infections have sent it into renewed paroxysms of volatility. Here’s attempt to answer top-of-mind questions from investors on how they should deal with this phase.
The initial public offer of SBI Cards and Payments is slated to be huge, aiming to mop up over Rs 10,000 crore. A subsidiary of State Bank of India, the company issues and runs SBI’s credit cards business. SBI Cards is the second largest credit card player in India after HDFC Bank.
What if you want your debt fund to have two things – safety and predictable strategy? Most funds have either of these but not both. Funds that don’t take credit risk are still open to changes in portfolio maturities and one-off events.
Inconsistent performance among funds in this category makes it hard to pick a quality one. Increasing credit calls by these funds changes the risk-return profile. Better returns for the same to lower risk possible through other newer categories
Want a fund that will avoid expensive valuations and yet not leave you with the pain of the long wait for value to work? This fund does just that. Not only that, this fund can replace large-cap funds in your portfolio.
Index funds are meant to track markets passively and not built to necessarily beat active funds. But if you had an Indian index that is able to beat comparable active funds with consistency, generates strong return, adds diversification to your portfolio and even substitute some categories of active funds, would you not consider it?