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 [...]
In continuation to my note on 9th August 2011
In continuation to my note on 9th August 2011, please find below updated returns chart for the same. GILT SIP from 29th July 2011 to 9th Sep 2011 – 1 Cr per week S. No. Mutual fund AMT INV CUR VAL +/- XIRR 1 ICICI Prudential GFIP 70,000,000 70,341,088 341,088 8.74% 2 Kotak Gilt [...]
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 [...]
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 [...]