Invest Short, Stay Safe
Business Today|September 20, 2020
DEBT INVESTORS NEED TO TREAD CAREFULLY IN THE FIXED INCOME MARKET AS THE BALANCE SHEETS OF THE TWO BIGGEST ISSUERS — THE GOVERNMENT AND CORPORATE SECTOR — ARE NOT IN THE PINK OF HEALTH
ANAND ADHIKARI
Invest Short, Stay Safe

One of the fastest-growing economies in the world may be staring at a recession for the first time in the last four decades. In fact, experts are even talking about a Great Depression ahead for India. These telltale signs are enough to cause panic among debt investors, already hit by the IL&FS default debacle. Interest rates, too, are on a decline, and are pulling down yields or returns. Real rates are already in the negative zone because of higher inflation and lower interest rates. The Reserve Bank of India (RBI) is also stressing on growth by reducing interest rates to support demand. “This situation of negative real interest rates is going to stay for some time,” says Rajesh Cheruvu, Chief Investment Officer of Validus Wealth, a wealth advisory firm.

There is likely to be one more rate cut of 25 basis points (1 basis point is one hundredth of a percentage point) in the near future. The balance sheets of the two big issuers of debt — the government and the corporate sector — are also not in the pink of health, which raises concerns on credit risk.

The priority of investors today is to protect their capital investments. So, where should one invest his or her hard-earned money in these times? A number of options are available under fixed income schemes — from fixed deposits, company deposits and debentures to public provident fund (PPF) and debt schemes of mutual funds. The returns range from 5 per cent to 10-12 per cent per annum. Though there are decent returns, liquidity and tax benefits, nothing is guaranteed if one goes beyond the government paper. So, investors need to tread carefully.

CASE FOR FIXED INCOME OPTIONS

Diese Geschichte stammt aus der September 20, 2020-Ausgabe von Business Today.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der September 20, 2020-Ausgabe von Business Today.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS BUSINESS TODAYAlle anzeigen
"Focus on the challenge of each customer"
Business Today India

"Focus on the challenge of each customer"

SHASHANK KUMAR MD & CO-FOUNDER I RAZORPAY Razorpay is India's first full-stack financial solutions company

time-read
1 min  |
December 08, 2024
PEDAL ON THE FUTURE
Business Today India

PEDAL ON THE FUTURE

THE MG WINDSOR EV, WITH ITS FUTURISTIC AND MINIMALIST DESIGN, COMBINES THE BEST OF BOTH WORLDS-COMFORT AND TECHNOLOGY

time-read
1 min  |
December 08, 2024
BREATHE EASY
Business Today India

BREATHE EASY

Whether you're battling allergies, looking to remove pollutants, or simply want to breathe easier, the right air purifier can make a difference

time-read
2 Minuten  |
December 08, 2024
The Taste of India in a Glass
Business Today India

The Taste of India in a Glass

FROM ROYAL LIQUEURS TO DISTILLED MAHUA, INDIAN HERITAGE ALCOHOLIC BEVERAGES ARE HAVING THEIR DAY IN THE SUN

time-read
4 Minuten  |
December 08, 2024
LOOK BEFORE YOU LEAP
Business Today India

LOOK BEFORE YOU LEAP

IN 2025, INVESTORS WILL NEED TO FACTOR IN VOLATILITY ACROSS ASSET CLASSES

time-read
5 Minuten  |
December 08, 2024
MISSING ADVISORS
Business Today India

MISSING ADVISORS

INDIA HAS JUST ONE INVESTMENT ADVISOR FOR NEARLY EVERY 200,000 INVESTORS. AT A TIME WHEN RETAIL PARTICIPATION IN THE STOCK MARKETS IS BOOMING, THIS ASSUMES SIGNIFICANCE

time-read
7 Minuten  |
December 08, 2024
TURNING A CORNER
Business Today India

TURNING A CORNER

SHARED ELECTRIC MOBILITY START-UP YULU'S SHIFT TO SERVICING THE QUICK COMMERCE SECTOR IS HELPING IT GROW FAST. IT IS NOW FOCUSSING ON IMPROVING ROAD SAFETY FEATURES AS IT TURNS EBITDA POSITIVE

time-read
5 Minuten  |
December 08, 2024
REALITY CHECK
Business Today India

REALITY CHECK

INDIAN STOCK MARKETS PLUNGED BEGINNING OCTOBER FOR A HOST OF REASONS, INCLUDING A FALL IN FII OWNERSHIP. HOW DEEP WILL THE CORRECTION BE?

time-read
6 Minuten  |
December 08, 2024
TRUMP'S TRADE TANGO
Business Today India

TRUMP'S TRADE TANGO

The return of Donald Trump as the 47th President of the US has put the global economy on edge. India, too, is unlikely to remain unaffected. How will policymakers meet this latest challenge?

time-read
9 Minuten  |
December 08, 2024
"The essence of the Trump administration will be transactional”
Business Today India

"The essence of the Trump administration will be transactional”

Global investor, analyst, and best-selling author Ruchir Sharma decodes why Donald Trump won the elections, what India should do, the risks, and more

time-read
10 Minuten  |
December 08, 2024