Falling Interest Rates The Repo rate is the rate at which the Reserve bank Of India lends to the banks. Reduction in Repo rate effect reduces the cost of borrowing across the economy and spur credit growth. Over the past four Monetary Policy Committee (MPC) meetings, the repo rate has…
Investment Strategy Credit risk is still present. Post IL&FS and DHFL, the quality of AAA papers have come into question. The appetite for credit risk has disappeared. Most fixed-income investors are flocking to quality. Taking some credit risk can result in higher returns – this must be taken in a…
Investment Strategy: Monetary policy plays an important role in determining investment strategy. At this juncture, high quality short to medium term funds could work well for conservative investors. Contact us to know more about your investment options. Market Outlook: The RBI reduced the repo rate by 0.25% in its…
Investment Strategy: In the current market context, volatility is on the cards. Most bond fund investors are likely to experience short term pain and may not experience a positive rate of return. Some bond fund investors may not even benefit from lower interest rates. However, there is still a window…
Investment Strategy: Based on the outcome of the recent RBI policy, it would make sense to revisit the investment strategy for fixed-income investments. A neutral stance indicates that the behaviour of inflation and growth is uncertain. In such a situation, it would make sense to avoid duration calls and stick…
The week saw increased scrip level volatility and better index level stability. This paradox is increasingly becoming a trend in our markets. Indices are showing lower volatility while more constituent scrips are showing very high volatility. The closer scrutiny in the corporate governance of individual companies is clearly the…
An election year throws up a series of questions on the outcome, approach, and tactics of political parties as they race to the finish line. Uncertainty looms large around these questions. Investors lose their appetite for risk when they are forced to face an ambiguous future. So, the market tends…
A country’s monetary and fiscal policies influence its economic outlook. In India, the Monetary Policy is drafted by the central bank (RBI). Through monetary policy, the RBI controls the cost of borrowing, liquidity conditions, inflation, etc. This has the power to shape the trajectory of the economy and ensure that…
Structuring a portfolio ensures that you are always ahead of the curve. Understanding macro and microeconomic factors are key to beating the market. It is easy to make money when investor confidence is high and the economy is doing great. But what happens when the picture isn’t so rosy. Would…
Investment Strategy: When it comes to investing money, our focus tends to gravitate towards returns. Making smart investment decisions takes care of returns. However, allowing returns to become the driving force does not guarantee the best of outcomes. This is more pronounced in fixed income investments where there is a…
In an effort to deepen debt markets, SEBI has mandated that large corporates should raise 25% of their borrowings from the debt market. Large corporates are listed companies who have outstanding long-term debt of more than Rs. 100 Crores and a credit rating of at least AA. When it comes…
Investment Strategy It looks like we are near the top of the interest rate cycle. Although this cycle has been shallow, there is still time to act. Bond yields have been consistently dropping and this is likely to continue until the end of the cycle. For investors already locked into…
