Debt fund strategies for the current rate scenario

The Reserve Bank’s monetary policy on Wednesday served up another repo rate hike of 35 basis points, adding to the 190 basis points through this year. That takes the repo rate to 6.25% from the Covid low of 4%. The key driving factor behind the rapid rate hikes – that of inflation – still remains. The RBI has clearly spelt its commitment to bringing inflation within the target range, even in its latest monetary policy.

But what’s also emerging are signals that the rate hike cycle is drawing closer to the peak. Or, to put it differently, while the RBI has left itself room to raise rates further, the pace and extent of the hikes may not be as blistering as before. From the peak, rates may remain stagnant before eventually shifting back down. This trend is already visible in the yield of 10-year gilt over the past 1.5 months.

In this light, debt fund strategies you have now, to make the most of the current scenario, can be decided based on what you want:

  • Buy and hold, to earn from the attractive yields now (called the accrual strategy)
  • Take the higher risk and invest in long-term debt funds now, when prices are low, to reap returns when the rate cycle shifts lower (called the duration strategy)
Debt fund strategies for the current rate scenario

The rate cycle signals

We will give a more detailed outlook on interest rates and debt markets in our 2023 outlook next month – this will be a more overall recommendation on debt opportunities as a whole and not specific to a particular strategy; we’re sticking to debt funds alone in this report. Meanwhile, though, there are a few indicators that point to the rate rise cycle getting into the end-stage. 

#1 RBI & inflation indicators

In the latest monetary policy, the RBI continued to stress on the need to bring inflation under control and has aimed to withdraw its accommodative stance to ensure inflation remains within the target. Nor has it changed inflation projections for the rest of the fiscal year or the first quarter of FY-24. It has also revised GDP growth projections marginally lower.

But if all this sounds super-hawkish, there are other trends playing out. One, obviously, is that the quantum of hike dropped from 50 basis points to 35 basis points; this indicates that the sharp earlier increases accounted for the bulk of the rate hikes and further increases can slow. 

This apart, the hikes already undertaken need time to take effect on inflation – a factor that had been highlighted in the earlier September policy meeting. That meeting had two members turning cautious on further rapid rate increases, citing the need to watch the impact on both economic growth as well as inflation. The current meeting also had one dissenting voice on hikes, as well as two on withdrawal of accommodative stance. This seems to suggest that the monetary policy committee’s stance is less firmly anchored towards continued increases.

Further, though CPI inflation has been sticky, WPI inflation has begun to cool off which eventually trickles down into consumer inflation. Global commodity prices have corrected and supply chain pressures that were responsible for part of pricey inputs have waned as well. The domestic agricultural outlook has also improved.

This suggests that, while inflation – especially core inflation – is not yet in the RBI’s comfort zone, the weight of the inflation issue has reduced and action may now depend on both incoming data and global factors. The other factor that has been at play are US rates; commentary from the US Fed also appears to suggest a tamer pace of hikes. 

Therefore, though there are no explicit signals that the peak rate has been reached, the likelihood of further hikes of the nature we’ve seen thus far stands curtailed. Market reports and economist commentary suggest a further 25-50 basis point increase at most.

#2 Market indicators

Another trend that points towards the rate rise cycle nearing its zenith is yield movements. The bellwether 10-year gilt yield has been shifting downwards in the past few weeks. Bond yields move up during a rising rate cycle and vice versa; since bond markets usually move based on rate expectations and not actual rate action, the falling yield is a sign that markets also do not expect rates to rise much more. 

As the chart below shows, the 10-year gilt, after hitting a high of 7.62 mid-year and closing in on that level again last month, has since dropped down to 7.26 levels now. While yields moved slightly higher in the immediate wake of the monetary policy announcement, it settled back lower.

Opportunities in debt funds

It is not possible to perfectly time the rate cycle; it’s best to act when there are more concrete indications over where rates may move. At this juncture, therefore, there are two ways you can play debt funds.

Before we get into these opportunities in debt funds, an important note:

  • These strategies are only for any surplus that you wish to invest in debt, or if you’re specifically looking for debt fund options based on the current rate cycle. 
  • Do not disturb your existing debt fund investments and do not exit for the sake of following such strategies. 
  • Simply holding on to your current funds will still earn you returns (provided, of course, they are quality funds! Please check the MF Review Tool for our calls on funds).

#1 Buy and hold

This opportunity is for those who would like the steadiness of accrual and who wish to make the most of the current high yields and who have a longer time frame of at least 3 years. For shorter time frames, you have no choice but to stick to categories such as low duration, ultra-short or money market funds. 

For longer time frames, one option is to invest in short-duration funds or, if your investment horizon permits, longer-maturity accrual funds such as corporate bond or medium term funds. Yields on these fund categories have significantly improved over the past year (see table below) and can therefore deliver well. Investing in the longer-maturity funds will also benefit should the rate cycle move into a falling cycle down the line. 

You can either add to the funds you already hold (if they are Buys in the MF Review Tool) or choose from the Short-Term and Medium-Term categories in Prime Funds

The other option is to invest in target maturity funds; the recent flood of NFOs in these funds throw up plenty of options. Yields on these funds are similar to that of other debt fund categories above, and give you the advantage of locking into these strong yields. Investments here are best done through lumpsums now rather than SIPs in order to lock into the higher yields. Do bear in mind that these target maturity funds are best aligned with your own investment timeframe as they will mature at the end and money returned to you.

Within target maturity funds, our recommendation is that you go for funds that:

  • Have a maturity of 3-6 years – the maturity-yield payoff here is better in these timeframes than the very long timeframes. To take more up-to-date yields, the Bharat Bond series offers perspective (as they are the only funds that declare current yields and not end-of-month). The 2027 gilt Bharat Bond currently has a yield of 7.47%; the 2030-2032 Bharat Bond has a yield of 7.51-7.54%. The spread between the 2032 and the 2027 has also narrowed from earlier.
  • Invest in SDLs, either standalone or along with PSU bonds – SDLs offer a better yield that plain gilts and are not much riskier either. For example, based on October data, the average yields of 2027/2028 gilt-only TMFs were around 7.46. SDL and SDL-PSU TMFs were between 7.52 to 7.57%.

The list of funds that meet the above criteria is below; we have removed funds with an AUM of less than Rs 100 crore. You can go for the funds with lower expense ratios. There isn't much of a difference in these fund strategies, just that the ones with SDL can give marginally higher yield. Please note that this is not an exhaustive list and given the spate of NFOs, there could well be other funds that come up.

#2 Play duration

A few months ago, when long-term yields were at highs and returns at lows, we had recommended investing in constant maturity funds through short-running SIPs. This recommendation was intended to make the most of the ‘low’ in the category – similar to buying equity when markets are down – and to hold for the long term.

Now, we are still making the case for constant maturity funds but with a difference. Here is our recommendation:

  • As explained above, rates may not move much higher from here – rates are then likely to hold steady for a period but will eventually have to move down. When that turn happens, there are opportunities to make higher returns through bond price appreciation. Therefore, the scenario now appears attractive to get into a duration play by investing at high yields and lower bond prices and book profits down the line. 
  • This opportunity is best played through very long-term maturity funds of around 10 years –constant maturity gilt funds or 10-year gilt-only target maturity funds. We do not recommend other gilt funds here as there is no control over what maturity these funds will maintain.
  • Lumpsum investments are preferrable to SIPs; you can at best stagger lumpsums over the next 2-3 months.

This strategy needs a higher risk appetite as it involves a bet on bond price movements. It also needs you to be vigilant and book profits when returns come in, which also means that you cannot really earmark it towards a particular goal. This holds even if you invest in a TMF; the call here is not to hold to maturity but to book profit or exit on a bond price rally. Note that the rate cycle heading lower is not a near-term call; you will have to hold for a longer period.

An indicator that you can track is the return you earn on the fund. If the compounded annual return since your investment is in single digits or double digits, it may be time to begin booking profits. For example, gilt fund 1-year returns in 2019 when the rate cycle began to fall shot all the way up to 16%. 
Our recommendation in constant maturity gilt funds is in the Very Long Term section of Prime Funds. For target maturity funds, the table below lists those with a 9-10 year maturity that invest only in gilts.

To summarise, while the RBI has its sights firmly set on bringing inflation under control and has the leeway to raise rates further, the bulk of the rise is now behind us. This offers opportunities if you’re looking for specific debt fund strategies to take advantage of the current rate scenario. If you do not have a surplus to invest now, there’s no action that you need to take. Simply continue to hold your current debt fund investments; portfolio yields are on the uptick after a years-long low phase which will begin to show up in your returns.

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30 thoughts on “Debt fund strategies for the current rate scenario”

  1. Hello Ma’am,
    In the duration strategy you are recommending
    10 year standalone gilt only TMF. Can we not invest in 10 year standalone SDL TMF. For e.g
    Kotak Nifty SDL Apr 2032 Top 12 Equal Weight
    as it is offering a better yield. Is it more risky than
    the standalone gilt TMF. Please explain, thanks.

    1. We see that you have raised the same query through a ticket, which we have responded to. Thanks, Bhavana

  2. 1. How about tracking error for these target maturity funds? Is tracking error details for passive debt funds available on Primeinvestor website?
    2. e.g. Bharat Bond ETF April 2030 tracking error was around 0.5% which I believe is high for a debt fund.
    Does Fund’s current YTM already reflects this tracking error?
    If investor invests looking at current Fund YTM and held till maturity, what is the deviation % possible?

    1. Hello Sir, They are not available as we do not get the direct index data from our data base for most debt indec funds. We expect it will not be low as passive debt funds are not required to hold the exact instrument as the index. Enough it is like to like. But if the volumes on such instruments vary, it can cause higher deviation. As long as passive debt funds deliver equivalent to active counterparts (higher in some cases) it is good enough. thanks, Vidya

      1. Thanks Vidya for your revert. Understood that tracking error can be big with respect to index. So tracking error becomes important when everyone talks of just yield curve.

        But regarding my 2nd question, how about possibilities of current Fund YTM (which is a selling point for TMF) being not achievable as actual returns even though fund held till maturity? If yes than What factors can contribute to difference between current fund YTM and actual returns at the end of maturity?
        e.g. one of the factor I see (i may not be entirely correct) mostly 5% of TMF portfolio is held in money market instruments which is offering better yield in current scenario but may not be the case in future.

        1. if held to maturity the returns must reflect the yield less expenses that you locked into. Only some huge disruption such as very high redemption can disrupt this. Vidya

  3. Hello Bhavna, Nice article. While you mention that existing investments (for 4-7 year duration angle) should not be touched , here are my specific questions : 1) If my Ultra ST funds have finished 3 years and I don’t need them for 4 years, should i just leave them OR redeem and move to TMF with 4 year maturity ? 2) I have loads of ST and corporate bond funds in the 5-7 year category which are also coming to 3 years. Again, should i move them to TMF or leave if not needed for 4-5 years?
    Thanks

    1. A long term portfolio should have a mix of ultra short, short and medium duration funds, especially if the corpus is large. To that extent, there is no need to exit the ultra short fund. You can hold them as long as you have other longer duration funds (which you seem to have). thanks, Vidya

  4. Bhavana,
    Many thanks for the insightful post.

    I have couple of doubts on Target Maturity Funds:
    (i) NAV changes – Does the NAV change only on account of the interest received in the fund from the securities held by the fund? Effectively, if I buy the fund 3 months down the line, I would have not lost anything – because the interest earned has been added to the fund NAV price that I paid for acquiring units and the YTM stated in the fund factsheet will be realized by me if I hold it till maturity. Or NAV also changes due to changes in Bond Prices (which ideally should not because we are holding everything till maturity – but I don’t know how it works – hence asking)

    (ii) ‘Realizable – investor’ YTMs for Target Maturity Funds that one may wish to invest in now.
    Is it dependent on the NAV acquisition price that an investor who enters the fund mid-way pays? (Confused as there are 3 parameters now – Bond Price, Bond YTM, Fund NAV. ) Or is the Fund YTM, NAV agnostic?
    Can the Investor YTM and Fund YTM be different? (if Investor has paid higher price for getting the fund YTM)? What’s the most reliable & simple way of knowing the Investor Realizable YTM for a Target Maturity Fund? Assumption – entering some months after NFO, holding till maturity.

    (iii) Updated Fund YTM, Investor YTM
    You have mentioned in the article that:
    ” Bharat Bond series offers perspective (as they are the only funds that declare current yields and not end-of-month”
    So for Bharat Bond series we get Fund YTMs on day-end basis and for others on their factsheet on month-end basis? So Jan 1st week could be a good time to invest.
    Again – if Investor YTM and Fund YTM differs then how to get updated Investor YTM

    Sorry for the long question. I hope I could present my doubts clearly.

    1. A fund’s NAV reflects the market value of its instruments, which includes bond price movements. It’s also how the fund’s YTM will change – for example, in a rising rate cycle, bond prices will drop causing yields to go up, which will consequently cause the fund’s YTM to go up as well. If you hold the fund till maturity, you will earn close to the YTM that prevailed at the point you invested in the fund, netting off factors like expenses.

      As far as YTM data goes, unfortunately, it’s hard to get up-to-date info. Some AMCs such as Edelweiss update the info through the month. Others may do it in their fortnightly debt portfolio updates. Otherwise, it would typically be in the first 2 weeks of a month when month end portfolio/factsheet info is published by the AMC. – thanks, Bhavana

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This service is not directed for access or use by anyone in a country, especially the USA, Canada or the European Union countries, where such use or access is unlawful or which may subject PrimeInvestor Financial Research Pvt Ltd or its affiliates to any registration or licensing requirement.

The Research Service, including recommendations, research reports, updates, and other information will be accessible through the RA’s website https://primeinvestor.in only. Such recommendations and updates will not be provided over phone calls.

Fees: Our current fee structure, the term and duration of our subscription for our Research Service, can be viewed on our website: https://primeinvestor.in/prime-pricing. Eligibility for any discounts is ascertained at the time the client subscribes. Any such discount and its tenure shall be at the discretion of the RA.

Subscription and access to content services fall under the purview of Goods and Services Tax (GST) as per the current indirect taxation policy, Government of India. Unless otherwise indicated, prices stated on our website are exclusive of applicable GST, any applicable value added tax (VAT) or other sales taxes. We are a business-to-consumer (B2C) service provider and we do not commit to provide any input tax credit on GST charged on subscription to our Research Service.

We may change the Subscription Fees and charges then in effect, or add new fees or charges which will take effect at the end of the client’s subscription period, by giving notice in advance and an opportunity to cancel renewal of the subscription.

Subscription Access & Renewal: Subscription to the Website commences immediately on the realisation of payment of the Subscription Fees. Subscriptions are set to be renewed automatically at the end of the subscription period.

Unless the client notifies us before the end of his/her subscription period, or the client cancels the auto-renewal mandate within the period specified by law, that the client does not wish to renew his/her subscription, the client’s subscription will renew for the period defined by the client’s subscription plan. We will charge the subscription using the same payment method that you previously used.

Although the client may notify to us his/her intention to his/her subscription, such notice will only take effect at the end of his/her then current subscription period, and he/she will not receive a refund other than as set out under Clause 8 in these Terms.

The client may notify us of his/her wish to cancel his/her subscription by sending an email to [email protected]. The client must provide at least 5 business days advance notice for this to be implemented.

Refunds: There can be no cancellation and refund of subscription fee paid once the subscription is active, other than as stated in Clause 8 of these Terms. If the client is entitled to a refund as specified under Clause 8 of these Terms, the RA will credit that refund to the card or other payment method used by the client to submit payment, unless it has expired - in which case the RA will contact the client to proceed with the refund. If we do issue a refund or credit due to circumstances outside the obligations specified under Clause 8, we are under no obligation to issue the same or a similar refund in the future.

General disclaimers: The recommendations made herein in the Research Services are expression of views and/or opinions and should not be deemed or construed to be advice for the purpose of purchase or sale of any security, nor a solicitation or offering on any investment/ trading opportunity on behalf of the company, AMC, insurance company, or issuer of security referred to herein.

The content and research reports generated by the RA does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities.

The information/ opinion/ views mentioned in research reports or by the RA are not meant to serve as a professional guide to the client or recipients of this Report. The research report, recommendation, or any other content published by the RA do not assure or guarantee any minimum or fixed returns to the client or recipients of the reports/ recommendations/ content.

Use of this information is at the client’s own risk. The client must make his/ her own investment decisions based on his/her specific investment objective and financial position and using such independent advisors as he/she believes necessary. The services rendered by the RA are on a best-effort basis. All information in the content or research report of the RA is provided on an as is basis. Information is believed to be reliable but the RA does not warrant its completeness or accuracy and expressly disclaim all warranties and conditions of any kind, whether express or implied.

While due care has been taken to ensure that the disclosures, information, and opinions given are fair and reasonable, PrimeInvestor Financial Research Pvt Ltd and/or none of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information/ opinions/ views contained in the research report and recommendations that form part of the Research Service, and/or mails, social media or notifications issued by PrimeInvestor Financial Research Pvt Ltd or any other agency appointed/authorised by PrimeInvestor Financial Research Pvt Ltd. Returns and performance figures mentioned in the research report represent past performance and should not be constituted to be future returns or guaranteed returns.

Any agreements, transactions or other arrangements made between the client and any third party named on (or linked to from) the Website are at your own responsibility and entered into at your own risk. Any information that you receive via the Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. Market price information may be rounded up/down and therefore may not be entirely accurate.

The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research Services before onboarding.

History, present business and background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services.

Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made thereunder against the Research Analyst relating to Research Analyst services.

Details of the RA's associates: No associates.

Usage of Website Content: This Website is controlled and operated by the RA. All material, including research reports, recommendations, portfolios, ratings, lists of financial products, illustrations, statements, opinions, views, photographs, products, images, artwork, designs, text, graphics, logos, button icons, images, audio and video clips and software (collectively, “Content”) are protected by copyrights, trademarks and other intellectual property rights that are owned and controlled by the RA or by other parties that have licensed their material to us.

Except where otherwise agreed in writing with the RA, material on the Website is solely for the client’s personal, non-commercial use. Except as provided below, the client must not copy, reproduce, republish, upload, post, transmit or distribute such material in any way, including by e-mail or other electronic means and whether directly or indirectly and the client must not assist any other person to do so.

Without the prior written consent of the RA, modification of the materials, use of the materials on any other web site or networked computer environment or use of the materials for any purpose other than personal, non-commercial use is a violation of the copyrights, trademarks and other proprietary rights, and is prohibited. Any use for which the client receives any remuneration, whether in money or otherwise, is a commercial use for the purposes of these Terms.

The client may occasionally distribute a copy of a research report, or a portion of the same, from the Website in non-electronic form to a few individuals without charge, provided the client includes all copyright and other proprietary rights notices in the same form in which the notices appear, original source attribution, and the phrase “Used with permission from PrimeInvestor Financial Research Pvt. Ltd.”

While the client may occasionally download and store research reports or information from the Website for his/her personal use, he/she may not otherwise provide others with access to the same. The foregoing does not apply to any sharing functionality we provide through the Website that expressly allows the client to share Content or links to Content with others. In addition, the client may not use Content he/she has downloaded for personal use to develop or operate an automated trading system or for data or text mining.

The client agrees not to rearrange or modify the Content available through the Website. The client agrees not to display, post, frame, or scrape the Content for use on another website, app, blog, product or service, except as otherwise expressly permitted by these Terms. You agree not to create any derivative work based on or containing the research products and Content. The framing or scraping of or in-line linking to the Services or any Content contained thereon and/or the use of webcrawler, spidering or other automated means to access, copy, index, process and/or store any Content made available on or through the Services other than as expressly authorized by us is prohibited.

The client further agrees to abide by exclusionary protocols (e.g., Robots.txt, Automated Content Access Protocol (ACAP), etc.) that may be used in connection with the Research Services. The client may not access parts of the Research Services to which he/she is not authorized, or attempt to circumvent any restrictions imposed on your use or access of the Services.

As a general rule, the client may not use the Content, including without limitation, any Content made available through one of our RSS Feeds, in any commercial product or service, without our express written consent.

The client may not create apps, extensions, or other products and services that use our Content without our permission. The client may not aggregate or otherwise use our Content in a manner that could reasonably serve as a substitute for a subscription to the Website.

The client may not access or view the Services with the use of any scripts, extensions, or programs that alter the way the Services are displayed, rendered, or transmitted to you without our written consent.

The client agrees not to use the Services for any unlawful purpose. We reserve the right to terminate or restrict the client's access to the Website if, in our opinion, the client's use of the Services may violate any laws, regulations or rulings, infringe upon another person's rights or violate these Terms.

Prohibited content: The Website includes comments sections, blogs and other interactive features that allow interaction among clients and between clients and the RA. We call the information posted by or contributed by users “Contributed Content.” In the course of availing of the Research Services or uploading any post or comment on the Website, the client shall not post any Contributed Content that (i) contains nude, semi-nude, sexually suggestive photos, (ii) tends or is likely to abuse, harass, threaten, impersonate or intimidate other users of the Website and/or Research Services, (iii) is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely to use or have access to the Website and/or Services, or (iv) otherwise violates, is prohibited or restricted by applicable law, rule or regulation, is offensive or illegal or violates the rights of, harms or threatens the safety of other users of the Website and/or Services (collectively “Prohibited Content”).

We reserve the right to cease to provide the client with the Research Services or access to the Website, or terminate your subscription, with immediate effect and without notice and liability, for violating these Terms, applicable law, rules or regulations and reserves the right to remove Prohibited Content which is in violation of these Terms, or is otherwise abusive, illegal or disruptive. The determination of whether any content constitutes Prohibited Content, violates these Terms, or is otherwise abusive illegal or disruptive, is subject to the sole determination of the Firm.

Changes to Research Services: We are constantly endeavouring to improve the quality of Research Services provided to our clients. Due to this, the form and nature of the Research Services provided may change from time to time without any prior notice to the client. We reserve the right to introduce and initiate new features, functionalities, components to the Website and/or Research Services and/or change, alter, modify, or discontinue existing ones without any prior notice to the client.

Warranty and liability disclaimer: The Website, Research Services, and all the materials and services, included on or otherwise made available to the client through this Website is provided by the RA on an “as is” and “as available” basis without any representation or warranties, express or implied except otherwise specified in writing. Without prejudice to the foregoing paragraph, the RA does not warrant that:

  • This Website and/or Research Services will be constantly available, or available at all;
  • The information on this Website or provided through the Research Services is complete, true, accurate or not misleading; or
  • The quality of any products, services, information, or other material that you obtain through the Website or Services will meet your expectations.

The RA, to the fullest extent permitted by law, disclaims all warranties, whether express or implied, including the warranty of merchantability, fitness for particular purpose and non-infringement. The RA makes no warranties about the accuracy, reliability, completeness, or timeliness of the Website, Research Services, Content, Contributed Content, Services, software, text, graphics and links.

The RA does not warrant that this Website, Research Services, information, content, materials, or any other material included on or otherwise made available to you through this Website, their servers, or electronic communication sent by the RA are free of viruses or other harmful components.

Nothing on this Website constitutes, or is meant to constitute, advice of any kind.

Indemnification: The client:

  1. Represents, warrants and covenants that no materials of any kind provided by him/her will:
    1. Violate, plagiarise, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or
    2. Contain libellous, Prohibited Content or other unlawful material;
  2. Hereby agree to indemnify, defend and hold harmless the RA and all of the RA’s officers, directors, owners, agents, customers/clients, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable advocate’s fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by the client of these Terms or the foregoing representations, warranties and covenants. The client shall cooperate as fully as reasonably required in the defence of any such claim. The RA reserves the right, at its own expense, to assume the exclusive defence and control of any matter subject to indemnification by the client.

Applicable law: This Website, including the Content and Contributed Content and information contained herein, and the provision of Research Services shall be governed by the Securities and Exchange Board of India, laws of the Republic of India and the courts of Chennai, India which shall retain exclusive jurisdiction to entertain any proceedings in relation to any disputes arising out of the same. As such, the laws of India shall govern any transaction completed using this Website.

Information gathered and tracked: Information submitted or collected on the Website or pursuant to the use of the Services is stored in a database. Specifically, we store the username, name, e-mail address, contact number, as submitted or collected on our Website or through the provision of the Research Services. We may use such information to send out occasional promotional materials, including alerts on new Services available, or other promotional and marketing material relating to our clients and customers.

In accordance with the Information Technology Act 2000, the name and the details of the Grievance Officer at PrimeInvestor is provided below:

Mr. Srikanth Meenakshi
PrimeInvestor Financial Research Pvt. Ltd., Registered office: 659, 4th Avenue, D-Sector, Anna Nagar Western Extension, Chennai 600 101.
Email: [email protected]

11. Mandatory notice:

Clients shall be requested to go through Do’s and Don’ts while dealing with RA as specified in SEBI master circular no. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49 dated May 21, 2024 or as may be specified by SEBI from time to time.

12. Optional Centralised Fee Collection Mechanism:

SEBI has operationalized a centralized fee collection mechanism for IA and RA. Under this mechanism, clients shall pay fees to IAs/RAs through a designated platform/portal administered by a recognized Administration and Supervision body. This is an optional mechanism for the registered entities. At this time, PrimeInvestor has opted out of this fee collection mechanism. Therefore, all subscription payments for the Research Services will be through the modes as specified in Clause 5 of these Terms.

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