Archive for the 'Debt Markets simplified' Category

Why Interest rates in India are wrong!

Most of the Governments of the world have been subsidised by the middle class. Let me explain. The biggest borrower in India is the Government of India – about 80% let us say. Now this government along with the RBI can decide the interest rates for most of us. They decide: at what rate PPF […]

Inflation Indexed bonds….how TIPS works

The government keeps talking about Inflation Indexed bonds – we are not clear when it will come. We have no clue as to how it will be structured in India. However this is how it should work if they do a cut and paste from the US – TIPS is the US product. Principally this […]

Understanding Bond Funds..series…

I have been receiving queries about investing in fixed income¬† securities. Not sure whether it is an indication that Indians are pulling out of equity markets (read the article on Bloomberg about this) or banks are giving real poor interest rates. So let me run a series of questions. 1. Should I invest in a […]

Savers: wiped out by Central Governments…

Let me start with a caveat. I do not benefit at all if you invest in equities. Or if you buy real estate. Or if you keep your money in banks or LIC. I am indifferent to what you actually do. Why should it impact me at all? Except that in a kinda roundabout way […]

Borrowing is NEGATIVE compounding….

  Most writers of personal finance have spent half their lives talking about the virtues of compounding, well, at least I have. So not compounding your money is bad. That is done and dusted. What can be worse? Borrowing. Borrowing is worse than not compounding your money – it is a case of NEGATIVE compounding. […]

Should I invest in a debt fund or bank fixed deposit?

Sometime back I decided to write about something which I have been advocating for years. How will you like it if I can postpone your tax payment from the year 2014 to 2034? You will love it right? First of all it means your money compounds for 30 more years, and you are paying with […]

Debt fund vs Fixed deposits

  What are the options that a person has when he/ she chooses to invest in a debt instrument? Well the choices are: 1. Bank fixed deposits:¬† requires very little explanation. 2. Company fixed deposits¬† not a big range of companies available, but a good option. 3. Company Bonds: Right from Tata to Sriram and […]