NEWS & ADVICE : FIXED DEPOSITS
Uncertainties in bond market might increase FD investments.
By Neelima Shankar
Dec 8, 2009
Print    Email    RSS   

Due to uncertainties in bond markets, investments consultants are suggesting their clients who want to park their money in debt instruments to consider traditional products like Fixed Deposits (FDs), postal schemes and senior citizen schemes.

‘‘We have been asking clients to stay away from debt schemes for the time being. If you are going to park money in a debt scheme for two or three years in a short-term fund or liquid-plus funds, you can hope to get only around 4.0-4.5%,'' says Kartik Jhaveri, director, Transcend Consulting

Amidst expectations of interest rate hike, the long term bond yields are likely to increase. If you are holding medium to long term debt, you are likely to suffer losses.

The experts said that though interest rates were about to go up any time soon, nobody wanted to take a call on the rates as they were not sure when RBI would start exiting its soft interest rate regime.

Some investment consultants held a contrary view and said that long term debt schemes were better for those who were ready to park money for three to five years as they expected the yields to even out by that time.

 

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Know about corporate fixed deposits
ICICI Bank’s recurring deposit scheme
Carnival of Indian Personal Finance Blogs #6
Carnival of Indian Personal Finance Blogs #2
Tax saver fixed deposits in India earn you...


how many rupees in my sbi account34309817454
I invest 4.5 lac in mis scheme in SBI how much...
FOR DEPOSIT OF 40,00000/- HOWMUCH IS MY INTEREST PER...
FEET @09780560514~@ Call GiRls ludhiana Female...
BaNg @~09780560514~@ Call GiRl In ludhiana EsCoRts...

NEWS THIS WEEK
SBI determined to continue retail banking in UK Oct 21, 2014
Axis Bank profit increased by 18% Oct 20, 2014
Axis Bank reduced its rate by 0.10% Oct 17, 2014
New FD rates of central Bank of India Oct 16, 2014
Cooperative banks should also actively participate in PMJDY Oct 15, 2014
News Archive