For Long-term investors a Yield to Maturity (YTM) works as a crucial factor. It indicates the maximum potential returns of a debt fund that one acquires until it gets matured. As the predictability is low in this case, the returns can be calculated by using yield to maturity. The simple formula helps a lot in …
In the world of financial investment, credit default swaps (CDS) is one of the most popular terms. It refers to the buying of credits from another lender or to exchange the debts in case of default of payment. A derivative product assists investors to nominate any other investor to reimburse the amount at the time …
Credit Default Swaps (CDS) – Everything You Need to Know! Read More »
Mutual funds have a range of classifications. One of the most discussed funds are equity and debt funds. Equity funds are often associated with securities, bonds or shares, whereas debt funds comprises of corporate deposits, government bonds , treasury bills, etc. Equity funds may have potential risks while higher in returns compared to debt funds …
Life is full of uncertain circumstances. So, it’s imperative to build a fund that can save you at times of emergencies. Emergency Funds are set apart from other savings, as it can help you to handle unfortunate circumstances like job loss, loss of family members, or medical bills. So, it’s always prudent to keep your …
What is the Best Place to Keep Your Emergency Funds Aside From Bank Accounts? Read More »
The Finance Bill 2023 proposes substantial changes to debt fund taxes in India. The revisions are intended to close tax loopholes utilized for investment by high-net-worth people and family offices. The proposed revisions have unfolded varied reactions, with some experts predicting a negative impact on the bond market and investments in debt mutual funds. Investments …
Finance Bill 2023 – Big Challenges on Debt Funds Read More »
The secondary market, an alternative term for after-market where previously owned assets such as financial bonds, notes, shares or options can be bought or sold by investors in the financial marketplace. Usually, these bonds are created by initial investors who issue shares of such securities, unlike the capital or primary market where the buyer does …
In 2014, RBI announced that NRIs and other foreign nationals are eligible to invest in non-convertible bonds and debentures (NCD Bonds). The contribution of NRIs to the purchasing and selling of shares or debentures has increased. What are NCDs? NCD stands for “non-convertible debentures.” These are debt instruments that are issued by companies and are …
The interest rate movement in the stock market influences the returns of a bond fund. When interest rates go down, long-duration bond funds are benefited the most. Whereas, when interest rates are rising, these funds are not fruitful. Factors such as inflation, government borrowings, RBI’s monetary policy, etc. explain the interest rate movement which is …
When Do Dynamic Bond Funds Make Sense For Investments? Read More »
Debt is another important component of the portfolio of the individual. It is that part of the total investment amount that will yield steady returns and provide an element of stability to the portfolio. Even though this might not derive the entire returns of the portfolio or seem to be no match against the returns …
A lot of debt that is held by individuals is in the form of deposits and bonds. Deposits include fixed deposits with banks and company fixed deposits. Many people adopt that Government of India bonds route. There are also several debt options in the small savings basket-like monthly income scheme of the post office and …
