This Xmas, ring out your FDs and ring in debt funds

This Xmas, ring out your FDs and ring in debt funds

Here are five reasons why debt funds will give you better returns in the New Year From the time the government had announced demonetisation on November 8, the market analysts have been talking about debt funds becoming more attractive. Shankar Iyer wanted to understand this better as he had limited knowledge of equity and debt markets considering his technical engineering background. He decides to consult his colleague Madhavan, a Chartered Financial Analyst, and advises his company on treasury matters, over a cup of coffee. Here are the five important points…

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5 ways to beat the sharp cut in FD rates

5 ways to beat the sharp cut in FD rates

Interest rates on bank FDs have started coming down and rates on other fixed-income products will also decline. Investors should lock into instruments offering higher returns, reports Sanjay Kumar Singh. Being flush with liquidity and having limited avenues to deploy their funds, banks have begun to cut deposit rates. The State Bank of India, ICICI Bank and HDFC Bank, among others, have reduced fixed deposit rates by 15 to 25 basis points (bps) for retail (small) deposits. For bulk deposits (Rs 1 crore and above), SBI cut rates by 125…

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