Category: Fixed Income

Fixed IncomeGeneral

FRDI bill: Please dont Panic!

Warm Greetings from PenguWIN:                             Couple of weeks back, one of our clients, who is 3 years away from retirement, reached out to me with the question of safety of bank deposits. Subsequently I got calls from atleast half a dozen clients and yesterday morning, one of our key clients, senior citizen, spooked by FRDI (Financial Resolution and Deposit Insurance Bill), called and wanted to move his major share of bank deposits to Mutual Funds...
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 (https://penguwin.com/rbi-governor-dr-rajans-dosa-economics/).  In the Budget 2017, the government announced a scheme which will provide guaranteed returns to Senior Citizens for 10 years and the rate would...
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...