Discover and read the best of Twitter Threads about #DebtFunds

Most recents (13)

We have maintained our stand since the very begining that @FTIIndia has not committed fraud, No scam, no #investment has been made in junk bonds, not committed a crime. We still stand by the same. (1/n) #franklintempleton #mutualfunds #investments #DebtFunds #DebtMutualFunds
Payments are even coming from those securities whom naysayers claimed are junk bonds, which we told was not the case but these #investors were being mislead by them & even now they are trying to prove their mischevious intentions. Ultimately Action Wins, not noise. (2/n) @bsindia
As far as @SEBI_India order goes we will not say much as the matter is inbetween the regulator & @FTIIndia. Both details are out in public domain already. But, the forensic audit has been across all activities of #franklintempleton which includes each & every paper. (3/n)
Read 8 tweets
#MCPersonalFinance | Coming in April, a new standard home insurance policy: Should you buy it? @Preeti__Kul explains: moneycontrol.com/news/business/…

#HomeInsurance #Insurance #IRDAI
#MCPersonalFinance | Many senior citizens suffer from inadequate cashflows. Reverse mortgaging their residence would enable them to get a steady income over their lifetime, writes @thanawala_hiral.

#SeniorLiving #FinancialPlanning
moneycontrol.com/news/business/…
#MCPersonalFinance | Mutual funds vs unit-linked insurance plans - Here are some factors that can help you assess the products and decide what suits you.

(By Joydeep Sen) #MutualFunds #Investment #Insurance
moneycontrol.com/news/business/…
Read 5 tweets
Time & again most #MFDs & FT itself letting Actual Investors of these 6 schemes know that even in times of #COVID they have accumulated more than ₹11000 crores without #monetization but still few people are having unnecessary doubts. (2)
I personally believe that if #History will be written, the #historians will focus on the solution not on the problem.

Saying Yes, to both Winding Up Consent & Active #Monetization is only & solely in the best possible move for #investors. (3)
Read 75 tweets
Should #NRIs based out of Singapore and the US #invest in India now?
Should we #invest now or wait until the #USElections2020 are over?
What happens to my #portfolio if #Trump doesn’t come back to power?
Read 13 tweets
As per @IndiaRatings #banks are likely to restructure up to ₹8.4 lakh crs of loans. Over 60% of ₹8.4 lakh crs could slip into the NPAs category, it added. We must keep a close watch on #mutualfunds having high exposure to such stressed #assets. #SaarthiZarooriHai @cafemutual
In spite of the fact that the expected quantitative effect of pressure that #mutualfunds may confront isn't known, #investors portfolio can be shielded from any plausible misfortunes emerging out of the exposure to stressed #assets. Select #DebtFunds after thorough evaluation.
On the background of the macro-economic challenges, COVID-19 emergency, & geopolitical strains; have such #investment portfolio that works under all #economic situations will be a reasonable strategy. But for the same #PlanZarooriHai & #SaarthiZarooriHai. @bsindia @NDTVProfit
Read 3 tweets
To protect the #interest of #investors & to enhance transparency @SEBI_India has revised much awaited disclosure norms pertaining to transactions in #debt & #money market #securities by #mutualfunds. @fifaindiaorg @bsindia
@OutlookMoney #SaarthiZarooriHai #PlanZarooriHai
W.e.f 1.10.2020 these disclosure details will be required in new format -

1. Name & type of security
2. Credit Ratings
3. Name of the rating agency
4. Maturity date
5. Settlement date
6. Interest accrued & yield
(2)
7. Information like rating of the security at the time of transaction, whether the security is listed, put/call option date, yield at which the security was traded, type of trade (inter scheme transfer/primary/secondary market, etc.)
(3)
Read 7 tweets
#AxisBank has raised 10000Cr via #QIP,at Rs 420.10,which is 5% discount to lower end of band

15000Cr,recently raised by #YesBank

In last 6 months,52000Cr raised by #Banks--#CapitalAdequacy will be key in dealing with post #Covid stress

Great move by banks to shore up Capital💪
#ICICIBank wanted to raise 15000Cr but got bids worth 62000Cr today at floor price of 351.36/-

Within few hours of opening,due to huge oversubscription,#QIP was closed

Clearly,there is no dearth of liquidity in the markets

90000Cr raked in by #DebtFunds in July'20
#GreenShoots
Lot has been written about #BoB's loss of 864Cr in June qtr,from 710Cr profit,YoY

Like i have been saying,most Banks now focus on #AssetQuality&not just Profits

BoB hiked #Provisions by 54% on standard loans,to cover for future losses

In 2013,Banks were doing the opposite😑
Read 7 tweets
Most of the rally at the longer end of the yield curve has already come about since the time @RBI started reducing policy rates. So, longer end of the #yield curve could thus prove less rewarding and risky (expected to encounter high #volatility) in the foreseeable #future. Image
- We may not see significant rally in longer duration funds.

- The rate cut would have limited impacted on prices & the yields in shorter duration #funds. (2) #mutualfunds #DebtFunds #debt #SaarthiZarooriHai #AssetAllocation
As govt. has raised its FY21 #borrowing limit by over 50% to ₹12 lakh crores from ₹7.8 lakh crores on account of COVID-19 #pandemic. Higher borrowing puts upward pressure on #bond #yields.
#mutualfunds #debt #DebtFunds #funds (3/3)
Read 3 tweets
Liquid #mutualfunds generated 6.32% returns in Jan - Dec, 2019 & 4.74% returns for ongoing FY 2019-2020.

@quantmutual & @FTIIndia funds have managed to outperform the benchmark index. For long tenure of 2 & 3 years, all schemes have beaten the benchmark & category avg. returns. Image
To reiterate, liquid funds are not risk free. Keep in mind that when you approach for #mutualfunds, returns should be secondary. Therefore, do not go after #LiquidFund that has a high credit risk exposure. Do not #invest solely based on past returns.
#Invest in a way that ensures hard-earned money is prudently parked in safe & liquid instruments & #mutualfund has managed well to earn a slightly better return than the money in a savings bank account (but not extra-ordinary returns). #SaarthiZarooriHai @cafemutual @fifaindiaorg
Read 4 tweets
When someone says the word #SIP, most of us associate it with equity #mutualfunds. But did you know that SIPs are possible in the fixed income asset class as well?
#Debt SIPs can be one of the most useful ways to meet your short term goals, recurring goals, and asset allocation needs.
SIPs in #debtfunds can be used to meet yearly school fees, build an emergency reserve, your annual vacation, regular recurring expenses, working capital, etc.
Read 8 tweets
8 questions to ask before you invest in a Credit Fund.

Q1) How much yield should the fund offer?
A) The principle of 'higher-the-better' does not apply to credit funds. Higher yields come with disproportionately higher risks. Funds offering 11%+ are a clear avoid. Thread 1/8
Q2) How diversified is the fund?
A) A fund with higher diversification is less risky. As per regulations, exposure in a company cannot exceed 10%. Well managed funds cap exposure in one company to 5% or lower. Lower exposure means lower hit on return if an accident happens. 2/8
Q3) Does the fund have high exit loads?
A) Usually exit loads ensure that investors allow fund managers time to execute strategies. However, very high exit loads often result in debt-traps restricting investors' exit even when there are glaring mistakes made by fund-managers. 3/8
Read 12 tweets
@CafeCoffeeDay group companies, there is high probability of default & funds may bear deep NAV loss. Higher concentration to these companies in #portfolio, higher the impact on valuation will be. Follow #prudent approach & don't forget, #debt funds carry their own set of risks. Image
Be cautious & assess your risk appetite before choosing a #MutualFund fund for your #portfolio & must take professional guidance. If you can't handle even a slight drop in #invested capital, just stay away from #debtfunds, especially those holding exposure to private companies.
#Indian #financial system is vulnerable to cascading effects of the poor #creditquality of corporates. NBFC's & private entities may have to bear the brunt of worsening fundamentals if liquidity remains scarce & #economy is unable to revive. Remember, this phase is temporary!!
Read 3 tweets
@SEBI_India tough stance against #mutualfund houses suggest that time for them to introspect has arrived. Now, restructuring of #riskmanagement framework will discourage mutual funds from taking excessive risk & mask them with complex credit structures. @livemint @NDTVProfit
Implications of #Riskmanagement practices for #debtfunds -

1. Now, in case of any unforeseen liquidity crunch, #LiquidFunds will be able to honour redemptions. The highly liquid #portfolio would make them a safer but less rewarding for #investors.
@livemint @NDTVProfit @bsindia
2. @SEBI_India's decision of obsoleting valuations based on amortization would make NAVs of #debtfunds more transparent. Now, all #debt & #moneymarket instruments will have to value their #portfolio on #MarkToMarket basis. @livemint @NDTVProfit @BSEIndia @OutlookMoney @cafemutual
Read 10 tweets

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