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manish962
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Posts: 87
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   Posted: 25/Jun/2011 at 4:32pm |
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Yes, you may end up losing the capital if the interest rates moves the otherway around. So it is a tricky affair. You need to track the bond movement closely and time the interest rate cycle to perfection to get good gains.There are lot of people who make money out of bonds. But they are having a long experience in G-sec trading. For a novice, it is not advisable to enter before sufficient study & experience is attained.
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basant
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Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 26/Jun/2011 at 8:07am |
Originally posted by rdyn
Originally posted by values
Article on valueresearchonline.com worth a read here
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Thank you for sharing this, values. Very good read. |
Excellent read.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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vivekanandask
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Joined: 25/Aug/2007
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Posted: 26/Jun/2011 at 11:25am |
You can read the full article here.
here
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posts: 4243
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Posted: 26/Jun/2011 at 11:47am |
Originally posted by photophobic111
Now since interest looks like to be peaking out..Is it time to buy long term debt funds? Debt funds will gain value when interest falls drop...this is what I have been hearing and reading.. So what you guys think?
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Currently, I have about 33% of my total debt MF assets in long term debt & gilt funds.
From these levels, even if returns do turn negative because of rise in interest rates, I expect it to be so only for a short period of time.
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kumardiwesh
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Joined: 26/May/2008
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Posts: 721
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Posted: 27/Jun/2011 at 1:52pm |
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Can someone kindly tell me which are the best-rated long-term debt funds?
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"History does not tell you the probability of future financial things happening" - Warren Buffett
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prabhakarkudva
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Joined: 16/Jan/2008
Location: India
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Posted: 27/Jun/2011 at 1:57pm |
Originally posted by vivekanandask
You can read the full article here.
here |
Buy good companies at reasonable valuations based on non fancy and simple models and hold them till they get over-valued.Then sell.Also don't buy anything that looks over-valued.
Can it get any simpler than this?
A testament to 'Doing well in stock markets is simple' and since not many are able to match their record also goes to prove that 'its not easy'.
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Take your chances and keep them in a box until a quieter time.
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photophobic111
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Posted: 27/Jun/2011 at 5:16pm |
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Thanks 2 all for reply.
Smartcat,
Well only 33% of debt in long term MF? Is it due to fear of further rise in interest rates? I have never invested and dont have much knowledge in Debt (or that matter in equity investing too) but as far as reading/uderstanding goes, debt MF will gain as interest rates will rise..and as u were mentioning from these levels, you dont see much rise in interest rates, I am expectig same too but then why only 33%??
Just trying to see what is your strategy or gameplan w.r.t to debt goes..
Will appreciate your response..
Thanks
Edited by photophobic111 - 27/Jun/2011 at 5:18pm
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Doing best is the essence and improving your best is the key to everything....
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posts: 4243
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Posted: 27/Jun/2011 at 5:25pm |
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Yes, there is a possibility of interest rate hike too - cannot rule it out completely. I'm basically diversifying within my debt portfolio. I cannot afford to see my entire debt portfolio giving negative returns - even if it is for a short duration of time.
I have another 33% in floating rate funds. The NAV of floating rate funds goes higher as the interest rates rise (unlike the NAV of long term debt MF which goes down as interest rates rise). The advantage of floating rate fund is that the NAV will almost never become negative over 3 months or longer time frames.
The remaining 34% is in liquid funds - it is strangely offering 8% per annum - because of liquidity crisis in the market.
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