INTERESTING PLAY IN 1-3 YEAR BUCKET
A very interesting story is likely to unfold in 1-3 year segment on the yield curve. Most of the market participants are in consensus about a downward bias on the yields of various maturities based on various factors which I have enumerated in my last note on AXIS Constant Maturity Scheme. I have given reasons [...]
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 [...]
STICKING TO SIMPLE FORMULA – TISTIP
Time & again I have been recommending investment in the captioned scheme with investment horizon of one year & above. The Fund manager’s strategy of generating returns over one year equal to captured YTM at the time of investment less expense ratio +/- 50 to 75 bps based on whether interest rates(at the end of [...]
POST MARCH VARIOUS SCHEMES
Prior to March ending and prior to RBI Credit Policy review of March 17, I had recommended following short term plans on various dates. From the following chart one will have an indication of the compression in yield curve over various time buckets on pre March & post March basis: Rates as on Mar-15 [...]
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 [...]