What primarily attracted us to the stock was its low valuation. The stock was trading at times its earning.
The rates are going down in small savings schemes.
So people are compelled to find out other avenues of higher returns. Here I will discuss what the debt mutual funds will offer to beat returns of FD. There are two ways to make money out of debt funds.
When the interest rates go down the bond values go up. The higher the duration the higher the bond values. When we expect interest rates to come down through out the year we choose a long duration debt funds.
That happened in But now the interest rates have already come down. There are now limited scope for interest rates to go down further.
So its not prudent now to invest in very long duration debt funds. In investors should concentrate on short term bonds or short term government papers or short term bank papers.
Apart from that the corporate bond funds are also likely to give good returns. So the tax payable is very less as compared to fixed deposits. Risk Involved In Debt Funds: Sometimes debt funds NAV come down temporarily if rating agencies downgrade certain corporates.
So if an investors comes out at those times he may suffer some financial loss. A credit default also can bring down the debt funds price rapidly.
To minimise the risks mutual funds invest in large basket of securities. So they invest in companies and if any downgrade happens in any of them impact is not much as the risk is diversified.
Indrajit is a professional blogger and trading system developer. Trading sincehe has started the journey of StockManiacs. He follows Indian and world stock markets closely.The NIFTY 50 is the flagship index on the National Stock Exchange of India Ltd.
(NSE). The Index tracks the behavior of a portfolio of blue chip companies, the largest and most liquid Indian. Watch Latest Videos on business and finance, stock market updates, Videos clips on market trends, experts views videos & more on cnbctvcom. ©Great Lakes Herald – April Volume 1, Issue 1 by Great Lakes Institute of Management, Chennai Across the Indian coast, southwest of Mumbai, lies the island of Mandwa on which nestles an impoverished village.
In this village dwells a school master, an upright man, who strives to impart his righteous principles upon his hot-tempered young son. IS Indian Standard PLAIN AND REINFORCED CONCRETE CODE OF PRACTICE (Fourth Revision) ICS 0 BIS We have briefly discussed about Kitex Garments a few times over the last 1 year.
What primarily attracted us to the stock was its low valuation. The stock was trading at times its earning. The clarity about the company’s business, however, was insufficient.