Gold Investment is not so common in India. Now you must be wondering we Indians hoard so much gold then why i am saying so. That is correct that we buy too much gold but not as a Gold investment. Mostly it is jewellery or gold coins at occasions like Akshaya Tritiya or Dhanteras. According to World Gold Council, Indians have approx 20,000 tonne of Gold. Another 557 tonne is held by the RBI. As per my understanding, out of 20k tonne, the only fraction of it would have been bought for an investment purpose i.e. Gold Investment. Purpose of Gold Purchase There can be two types of Gold Purchase ... Read More
New Lending Rate – Five Loopholes RBI Should Have Fixed
The new lending rate regime based on Marginal Cost of Funds will be implemented from April 01, 2016. There is a lot of anxiety among both potential and existing borrowers. It is because of uncertainty about the new lending rate. The key concern of a borrower is that we should not miss the bus. The new borrowers are postponing the home loan in anticipation of much lower interest rates. On the other hand existing borrowers are worried that banks may charge hefty conversion fees to shift them from Base Rate to new lending rate i.e. MCLR. This kind of anxiety was last seen when base rate replaced ... Read More
Debt Mutual Funds – 7 Hidden Risks
Till few years back i was quite bullish on Debt Mutual Funds. The Great Crash of Debt Mutual Funds in July 2013 shattered my faith in Debt Mutual Funds. The most impacted funds were Liquid Mutual Funds that are considered to be safest among all. Liquid funds invest in money market instruments. The lower maturity period makes them best investment option for short term. I regained my faith in Debt Mutual Funds and invested in Long Term Debt Mutual Funds. The last one year is also not good, especially for long-term/gilt debt mutual funds. We will discuss this later in detail. The 1 month return ... Read More
Equity Investments – Why i Quit?
Equity Investments are subject to market risk. You must have read this disclaimer thousand times cautioning investors about Equity Investments. We can handle RISK but when we anticipate DANGER, it is better to QUIT. Today was very beautiful day till 1 PM, but suddenly markets crashed by 300 Points. The CRASH came immediately after European Markets opened for trading. It was swift and sudden. The index/Nifty has broken its crucial support level of 7750. It was quite SHOCKING and ABNORMAL behavior from Market. Few days back, i cautioned my readers about the imminent threat but was praying that ... Read More
Why you should buy Long Term Debt Funds?
Long Term Debt Funds will deliver Double Digit Returns reads the headline on popular finance portal. This is one of the examples, In last 3-4 months, you must have come across similar headlines multiple times if you are a regular investor. I read almost all such articles, but none of the articles answered Why i should buy Long Term Debt Funds?. At max, the reason given was that with the drop in Interest rates, Bond yield will drop which will increase the Bond Prices. In short, Drop in Interest Rate will benefit the Long Term Debt Funds the most as they invest in Government of India Bonds and ... Read More