Category: Fixed Income

PenguWIN Wealth
Fixed IncomeGeneralMini Blog

For the benefit of Senior Citizens and Good to Know for others

Dear Friends, There were constant complaints from Senior Citizens to RBI about the interest rate cuts that resulted in the lowering of Bank FD rates from over 9% to about 7%. Dr. Rajan explicitly mentioned this in one of his speeches and the famous “Dosa Economics” is linked to this (  In the Budget 2017, the government announced a scheme which will provide guaranteed returns to Senior Citizens for 10 years and the rate would...
PenguWIN Wealth
Fixed IncomeGeneralMutual Funds

Opportunity in Debt Mutual Funds – II

How does Debt Funds work and where do they invest? Debt Fund’s source of returns are interest income and capital appreciation. Capital appreciation is unique to debt funds which is generated through trading of securities. Investors need to be aware that in Debt funds price is inversely proportional to Interest Rate and Yield. i.e. when interest rates go down, the value or price of the security goes up. Yield in simple terms is the interest...
PenguWIN Wealth
Fixed IncomeGeneralMutual FundsPersonal Finance

Opportunity in Debt Mutual Funds – Alternative to Bank and Postal Deposits

Friends,            Many investors carry a wrong notion that Mutual Funds is all about Equity/Stock investing. But the reality is as on 30th Sep 2016, data from AMFI (Association of Mutual Funds in India) says investments in Equity MFs is 5 Lakh Crores Vs 11 Lakh Crores. i.e. Only 31% of the funds are invested in Equity and the rest 69% are in Debt Funds. Since the content required for this blog is high, I...