@invest_mutual correct me if I am wrong, but bonds are not FD replacements.
In most, you buy a bond at a higher price. The effective yield, if you held it till maturity, is going to be lesser. If you want to make money by buying and selling bonds, you might as well buy index fund
Reason:
You should know when bond prices will shoot up to give you sufficient capital gains/profit. You should get better profit than holding the bond till maturity.
You should be certain that the company won’t default in the mean time.
If bond is selling very cheap, it’s because the risk is higher.
Though on paper you may get high yield, there is no guarantee that the company won’t default.
Even if you got it cheap and the company didn’t go bankrupt, the bond may not be liquid enough to actually make profit.
Basically,
Bond/NCD ≠ FD.

Don’t blindly buy bonds.

Especially when you are a senior citizen.

Remember that if a bond has same risk as your Nationalised Bank’s FD, it’s yield will also be around same levels. If it’s not, it’s probably not equally safe.

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More from @muralipiyer

31 Oct
I believe what’s happening now is a disruption in the way we think of commutation.

The pandemic has shown us that an 8-hr office is not really necessary.
Of course, there are sectors where Work-From-Home doesn’t make sense.
But, vast majority of work can be done from home.
The reason: we have now digital connectivity substituting for physical or road connectivity.
This is an option we never had in the past.
Technically, we can employ people from home, with an occasaional face to face interaction for certain limited activities that require physical presence.
Read 27 tweets
31 Oct
Happy #EktaDiwas to all.
Tributes to #SardarVallabhbhaiPatel.

He will always be remembered as the man who united the nation.

A brief thread with a contrarian view follows:
1. There has been a consensus so far that making all princely states join the union of India was a wonderful thing.
And then, there was these massive state reorganisations starting from 1956.
2. First point to accept: the “provinces” under British were already large.

But, are we supposed to believe that none of the “founding fathers” who fought for independence were unaware of the local history? I don’t buy such a claim.
Read 15 tweets
30 Oct
A bit of history on what’s really happening in France.
You all know about the nexus of commies and islamists.
Not going to repeat it.
In 4 decades, there will be more Muslims in the world than Christians.
Again, from pew research report
Read 6 tweets
17 Oct
#options #notes
The days of relatively higher implied volatility seems to have come to an end now.
Bank nifty historical IV is now in 30s. IVP is now in the 50s.
Nifty is even lower. Historical IV around 20. IVP in 40s.

It’s like the days of Iron Vertical spreads and IB are on.
#options #notes
SBIN is at IV of late 40s. IVP around 50.
ITC is at IV late 30s. IVP just above 60.
NTPC is at IV 40s. IVP in 60s.
COALINDIA IV 40s IVP around 60.
Reliance IV around 40 IVP around 60.
LT IV 30s.

NMDC IV 50s, but it’s very illiquid.
#options #notes

The thing is that 45 day trades are becoming very tough now.

With US elections possibly going to have an impact, indices are not that safe and stock options (the few ones that are liquid enough) are not that good for a 45 day duration.
Read 19 tweets
17 Oct
This is a perspective.
Everyone should watch this because it’s a bit more balanced.
The minor place where I disagree with @vagishasoni:
The response to the ad is political. In terms of western equivalence, it’s like black people slamming an ad for praising slavery.
The key visual cue here is pregnancy. The girl is forced to accept terms because of pregnancy.
Pregnancy makes the ad look like glorifying what’s seen as love jihad, or forceful use of premarital relationships to trap esp Hindu girls.
Essentially, the ad was politically insensitive. The ornaments worn are typically Hindu. This makes the ad more one sided.
Read 4 tweets
1 Oct
72. #Options #Notes
After spending two months on actual trading of options(I am 7 trades wiser for which my tuition fees is close to ₹8000), it’s time to add a few more notes to this thread.
73. #Options #Notes
For a beginner who just wants to try out how options work, the command line interface type of learning is to go for currency options. You have to manually calculate everything. The payout is not in any easily viewable chart. It’s very taxing. But loss is tiny
74. #Options #Notes
My style of learning has always been about daring to make mistakes and learning from them.
Of the ₹8000 loss, one of the trades i deliberately allowed loss to go down to ₹5000. That one trade actually cost me a lot, but the learnings were wonderful.
Read 35 tweets

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