Other Asset Classes
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 [...]
CURRENT MARKET SCENARIO
I had mentioned in my Blog Note dated November 08’2010 (post RBI announce Policy Review on November 2) that inflation for various reasons will be an issue and hence, liquidity will remain tight for some more time. Having said that, no one expected inflation to remain at such high levels and also the current crisis [...]
VARIOUS ASSET CLASSES & SCHEMES
So far market participants were not taking any interest rate or duration calls as the interest rate bias was upwards. Since May 2010, RBI has intervened time & again in practically all the Policy Reviews by increasing benchmark rates and narrowing the corridor between REPO & Reverse REPO rates. However, after the last Policy Review [...]