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…
Investment Strategy: As we move into a rising interest rate scenario, the focus shifts to high-quality low-volatility investments. Our strategy has been to construct a layered portfolio by locking into high-quality investments at different yields. At this juncture, short-term AAA investments make the most sense. Contact us if you would…
Investment Strategy: The RBI’s stance of calibrated tightening indicates that rate hikes are possible but not mandatory. As investors, it is important to capitalize on rising yields to structure a layered portfolio. The spread between the repo rate and the 10 Year Government Security is nearly 1.5%. This presents a…
The rupee now stands at 72 against the US Dollar. This is an unprecedented low. So far, neither the RBI nor the Government has aggressively stepped in. Is there an investment opportunity for you? When the rupee weakens, the markets react. The yield on the 10 Year Government…
In good years, defensive investors have to be content with the KNOWLEDGE that their gains, although perhaps less than maximal, were achieved with risk protection in place, even though it turned out to be not needed. – Howard Marks Every investor scrutinizes the relationship between risk and…
Investment Strategy Bond markets may witness volatility over the next few weeks. Debt portfolios could see notional losses because of this. Portfolios can be protected by sticking to instruments with shorter maturities or by either holding investments until maturity. Fresh investments should be made in a phased manner, taking advantage…
Investment Strategy Uncertainty often induces fear in financial markets. Developments in the local and global economy leave room for rate hikes. If bond yields rise, longer-term portfolios will be impacted the most. The sensible choice would be to focus on diversifying risk through asset allocation and investing in high-quality instruments.…
Market Outlook: Volatility has struck debt and equity markets in equal measure in 2018. Valuations continue to remain an area of concern with respect to equity markets and volatility will continue to persist until earnings match valuations. This is a global phenomenon and is not restricted to domestic equity markets.…
Investment Strategy With higher uncertainty in debt and equity markets, this would be the time to review asset allocation and manage risk. There is now an opportunity to construct a layered debt portfolio. A phased transition out of ultrashort-term funds into high-quality accrual funds may be warranted. Policy Highlights…