With returns failing to match risks and RBI relief measures complicating life for lenders, the next six months promise to be a minefield for debt investors. Here’s how you can navigate this
Debt investors looking for a safe parking ground for their long-term money are facing a drought of good options today. Under the circumstances, there is one less-known option that offers the combination of higher-than-market interest rates with complete safety of principal.
The over 92,000 staffers who have opted for the Voluntary Retirement Scheme (VRS) from BSNL and MTNL are now faced with the challenging task of finding a safe parking ground for their money while making sure it earns reasonable income in a low interest rate environment. They need to factor in liquidity and tax efficiency too. If you’re a VRS optee, don’t worry. Here’s a list of attractive investment options, ranked in the order of their safety.
The Bharat Bond ETF will open on December 12 and close on the 20th. Most of you would have read about the ETF in the news. PrimeInvestor had briefly covered it last week, where we discussed the emergence of a new class of debt ETF. With all the details about the Bharat Bond ETF now out, let us move to specifics about the Bharat Bond ETF from Edelweiss AMC.
As the Monetary Policy Committee (MPC) decided to defy all expectations to hold its repo rates at 5.15 per cent yesterday, a sigh of relief must have gone around retirees and fixed deposit investors. But as the MPC has kept the door open for further cuts by signalling an ‘accommodative stance’, they must be wondering – “Is this rock-bottom for interest rates? How much lower can they go?”
Owning bonds, unless you are well-diversified, has become a super risky proposition since September 2018. Credit risk and drying up of liquidity have proved to be lethal combinations to manage for investors. Now the debt ETF space may receive some life with the soon-to-be launched defined maturity PSU Debt ETF.