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Why should I consider investing in bonds?
Investing in bonds can provide several benefits, including: Income Generation: When you invest in bonds, you receive interest payments, usually semi-annually or annually. This income can provide a steady stream of income, especially for retirees or individuals looking for passive income. DiversificaRead more
Investing in bonds can provide several benefits, including:
Overall, bonds can be a valuable addition to a diversified investment portfolio, providing income, capital preservation, and risk reduction. However, it’s essential to understand the risks associated with bonds, including interest rate risk, credit risk, and inflation risk, before investing.
See lessAre G-secs good option to invest in India?
G-secs are a good option to invest in India because of their attractive interest rates. Agency securities (also called G-secs) are issued by the Government of India and sold through various banks. They are fixed income securities like bonds, where the issuer promises to pay an investor interest at iRead more
G-secs are a good option to invest in India because of their attractive interest rates.
See lessAgency securities (also called G-secs) are issued by the Government of India and sold through various banks. They are fixed income securities like bonds, where the issuer promises to pay an investor interest at intervals and then repay the principal amount after a specified period of time.
How does the repo rate affect my bond?
When you purchase a bond, you are lending money to the issuer. A repo rate is just the interest rate that is charged on a loan. If this is high, it will have an adverse effect on your bond. Indeed, when the repo rate goes up, it causes the value of bonds to go down, and vice versa.
When you purchase a bond, you are lending money to the issuer. A repo rate is just the interest rate that is charged on a loan. If this is high, it will have an adverse effect on your bond. Indeed, when the repo rate goes up, it causes the value of bonds to go down, and vice versa.
See lessIs it right time to invest in debt mutual funds?
The best time to invest in debt funds is when you have saved enough for the future, but still feel the urge to invest.For example, my wife and I ended up investing about Rs 20 lakh each in a debt fund. We did so because we are seeing our own investments grow by around 10% annually and we wanted to bRead more
The best time to invest in debt funds is when you have saved enough for the future, but still feel the urge to invest.For example, my wife and I ended up investing about Rs 20 lakh each in a debt fund. We did so because we are seeing our own investments grow by around 10% annually and we wanted to be conservative with our capital growth.Many people use credit cards as a source of capital, but they fail to see that every month they are paying interest on it (sometimes even more than the interest paid on their car loan). In contrast, if they invested that money at 8-10% returns on maturity, they could end up saving tens of thousands of dollars over their lifetime.As an alternative to debt funds, you can consider equity-oriented mutual funds – largely because you will get better diversification than in debt funds and these usually have lower fees too.
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