Posts Tagged ‘ 10 year G sec yield ’

Identifying Opportunities in the Debt Mutual Funds

Tuesday, January 21st, 2014

Fixed Income Investments serve to diversify your portfolio, help to stabilise your over all return and create a predictable income stream to support your desired lifestyle.

Bonds can provide excellent Risk-adjusted returns. Let’s evaluate where we should invest in the current market scenario.

  • The 10 year G-sec Yield has cooled off to 8.52% after moving above 9% last month.
  • Largely led by primary articles, Inflation at both wholesale and consumer levels have shown a large down-tick.
  • On Account of fall in food inflation the Retail inflation dropped to 9.87% in December.
  • WPI fell to 6.16% the lowest level of Inflation in last 5 months.
  • The fall in inflation is in line with RBI expectations.
  • For the month of January the inflation number may come even softer driven by further cut in agri inflation and base effect.
  • The Inflation data coupled with weak demand and possible fiscal cuts may signal a plateau for interest rates.Please go through the movement of Yields in last few days.

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