Comments on: Terrible losses in Gilt!!

By: LuckyOye

LuckyOye — Thu, 02 Aug 2012 12:56:37 +0000

Why will gilts lose value if Central Banks maintain interest rates much below inflation rate %? Central Banks can keep dropping the interest rates and the increase in bond prices will offset inflation right? While you can say that 0% is the theoretical limit, you can always keep the game going by dropping the interest rates in fractions…like 0.00025% and so on…Approach zero without actually hitting zero…

By: Dr M Chandrashekhar

Dr M Chandrashekhar — Wed, 01 Aug 2012 11:55:28 +0000

You said, Bank Manager- & he invests only in FDs. These days Bank Managers are busy conning Investors to invest in Corporate FDs, Debentures,ULIPs, Mutual Funds etc esp. if you are not inclined to invest in their bank FDs.

To me the whole discussion is quite confusing & appears to be a figment of fertile imagination!

By: krish

krish — Wed, 01 Aug 2012 10:32:44 +0000

There is complete inconsistency in this article. Comparing FD with Indian bank, US Gilt, FOREX, US Inflation and Indian equity is quite confusing.

My BIL had invested in nearly USD 50K in Indian equity when the FOREX was USD = 38 INR. He suffered portfolio losses and currency devaluation. After about 4 years or so, finally 10K USD went back to his kitty. Same is the case with 3 other family members. They are very happy to reduce their networth owing to US inflation ( 4%) than Indian equity/currency loss (70-80%). I am not sure these Indian Americans would ever come back to investing in India.

By: subra

subra — Wed, 01 Aug 2012 10:10:32 +0000

http://articles.economictimes.indiatimes.com/2012-05-29/news/31888192_1_securities-market-asset-indian-market/2

http://articles.economictimes.indiatimes.com/2012-05-29/news/31888005_1_mutual-funds-etfs-broking

are two articles about investing abroad…

By: S

Wed, 01 Aug 2012 09:25:28 +0000

“You should be even more safe – why risk investing in India where there is a currency risk? You should be investing in the US gilt. Is that not the safest?”

Extrapolate what someone says and then go on a needless rant. Nice.

Maybe more people will read you blog if you stop acting like you know everything while we are supposed to be ignorant dimwits.

By: Mira D

Mira D — Wed, 01 Aug 2012 06:41:31 +0000

Subrabhai, bank manager, you said?
Either he should have known all this. OR he will never know all this.
bhensh agal bhagwat as we say in the vernac.