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
Children’s Saving Account- teaching...
Financial planning: a tool to retire...
Should you preclose your current FD for...
Carnival of Indian Personal Finance Blogs...
Complete guide to TDS on fixed deposits in...


as sr citizen i deposit 40lacs i want to know how...
Escorts in panchkula......9872814230???
I was deposit Rs,200000,00 by Mis self sbi saving...

NEWS THIS WEEK
EPFO stiffer in following the Inoperative account norms Jul 30, 2014
IDBI bank denied for the offer of the merger with the UBI bank Jul 29, 2014
Karnataka Bank signed MOU with Star Ari warehousing and Collateral Management Jul 28, 2014
Registration for the common banking entrance exam have started Jul 24, 2014
New Corp excel branch in Bangalore Jul 23, 2014
News Archive