Archive for the 'Debt Markets simplified' Category

Why Equity markets out perform Bond markets? Part 1

Bond traders and Equity traders are so different! When you meet the two of them in different groups, you wonder how a CIO handles both these animals! Most myths around the world are that ‘Bond traders’ are smarter than their Equity counterparts. Well, lets not get into banana peel area! Why equity out performs bonds […]

Debt products – the full range

What are the debt instruments that you can invest in? As an Indian you have a lot of choice as far as debt is concerned. You should look for the following when you are looking for a debt instrument: 1. Who is the issuer: the Government, Municipalities, Public sector companies, Private sector companies, – including […]

Bonds or Bond fund?

I had done an article saying ‘Fixed deposits or Debt funds?’ a few months back. Now I am asking a question again: Bonds or Bond fund? Recently there have been a spate of bond issues by PSUs and they all have been at attractive yields. When I argued in FD v Debt fund, the argument […]

Misconceptions about debt funds

  Even though debt funds are the biggest contributors to the mutual fund corpus in India, there is surprisingly not much literature on debt funds. Let me start by clearing some misconceptions about debt funds: 1. Debt mutual funds ¬†are EXACTLY like bonds: Debt funds and bonds are very different. If you can lock in […]

All debt products..

Let us see what happens when a HNI wants to build a debt portfolio of his balance sheet! Why only a HNI? Simply because a not very rich person may be happy with 4-5 PPF accounts (into which he can invest about Rs. 2-3 lakhs a year), some bank fixed deposits, etc. However for a […]

So you want to buy a house?

Now that people have postponed their foreign trips, they all want to buy a house…. Let us see if you can afford a house: – can you afford to pay at least 40% of the cost of the house as a down payment? – can you afford to pay the EMI on just ONE salary […]

Debt fund: what to do next?

The amount of commotion that has happened in the debt market is not funny. Yes not too much has happened in the market – it is the regulator who is doing most of the things. Let us accept the following: Posco, Warren Buffett, Ikea, many FIIs leaving India is surely not good news. However we […]