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
 Select a product:

 Select a product:

Need of nomination in bank accounts
Sweep in to Auto Sweep savings A/c
How to Invest to Save?
Medical Insurance: Save tax along with health
J&K Bank raises PLR

Vashikaran specialist In United States...
Love problem solution +919636763281
Girl ~~~ Boy (LOVE) Problems Solution +919636763281
PUNE ! Call Girls In 08554976404 •=• Viman Nagar...
[[ 9I3O4O3331 =•= 9O49O92296 ]] Puℕe Caℓℓ...
ҠOreĞaon Park 08554976404 Ξ 08554950024 Pune CALL...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive