Other Asset Classes
GILT THROUGH SYSTEMATIC WEEKLY INVESTMENTS
On July 29, I had recommended investment in GILT thru strategy of SIP with an intention of creating average over next 3 months till October. Benchmark rates on that date were hovering between 8.40 & 8.45 levels. I had also given reasons as to why I feel benchmark yields should come off from these levels [...]
TRADING CALL IN GILT THROUGH SIP
I had recommended investment in GILT schemes thru a SIP mode sometime in July 2010 when 10 year benchmark was at 7.70% levels. Thereafter till October when benchmark went upto 8.01%, the said strategy had generated close to 6.50-7% p.a. returns inspite of inching up benchmark yields. Of course, thereafter with a clear direction of [...]
Alternate to 1 month & 3 month FMPs
In the current market scenario, wherein the short term rates (between 30-90 days) have been on the downslide, it does not make sense to invest in 1 & 3 month FMPs. As against that there are two schemes which are capable of locking in higher accruals and give rise to some capital gains over 1 [...]
TATA FIXED TENURE FUND
This is a close ended scheme with tenor of 3 years. It invests 80% in high yielding AA+ or higher rated debt instruments & balance 20% in equities. Timing could not have been more appropriate for a scheme to capture best of both asset classes viz. Debt & Equity. Yields on debt papers are [...]
ASSET CLASS POST NEW REGIME OF DIVIDEND DISTRIBUTION TAX
Under the new regime of Dividend Distribution Tax post June 01’2011, selection of debt schemes based on tax arbitrage will be a thing of the past. All debt schemes will have to compete with other direct investments like FDs, NCDs, etc based on pre tax returns generated (as tax treatment for all instruments will be [...]