The evolution of bond investment in India: Sachetization and its implications

In recent years, the concept of “sachetization” has been gaining momentum in India’s financial markets. Commenting on this trend, Madhabi Puri Buch, chairperson of Securities and Exchange Board of India (Sebi), recently said “We know the entire story about how the shampoo market in India exploded when it moved from bottles to sachets and people could afford …

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4 fixed income sources every Gen Z needs for stability

The most immediate benefit of a fixed income is its contribution to effective budgeting. With a predictable paycheck, Gen Z can allocate funds for essential expenses like rent, utilities, groceries, and transportation. This allows them to plan their spending more effectively, ensuring they can meet their basic needs without living paycheck to paycheck.  Additionally, knowing …

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Will investing in bonds be made easier in India?

Indian investors love fixed income, and equity. Bonds, however, have not made the cut yet. The discomfort to invest in bonds is further accentuated due to lack of information and illiquidity. Having twin regulators at the helm— with the Reserve Bank of India (RBI) supervising government bonds and market regulator Sebi overseeing corporate bonds—has not …

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South Korea’s retail investors join craze for Indian bonds

The craze for India’s booming bond market has reached as far as South Korea, where a bond fund that’s been mostly dormant for a decade is suddenly getting lots of interest. Mirae Asset Management Co.’s fund dedicated to Indian debt has grown to about 32 billion won ($22.5 million) from 24 billion won at the …

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Mistrys: Mistrys go fund shopping to pay off expensive bonds

New Delhi: The Mistry family, promoters of Shapoorji Pallonji (SP) Group, is looking to raise ₹15,000 crore in five-year loans against cash flows in their real estate business to replace high-cost debt, according to people with knowledge of the matter. The funds will be used to redeem bonds issued three years ago that have onerous …

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Why should you include debt instruments in your portfolios? Here are 5 key reasons

Navigating the Indian financial landscape can be akin to a thrilling yet complex journey. Amid the buzz around stocks and real estate, there lies a less talked about, yet crucial, investment avenue: debt instruments. For the discerning Indian investor, understanding and leveraging these instruments can be a game-changer. Let’s delve into why incorporating debt instruments …

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IIFL Samasta to raise funds up to ₹1,000 crore via bonds; details here

IIFL Samasta Finance, a non-banking microfinance company (NBFC-MFI) in India, will raise funds amounting to ₹1,000 crore through its inaugural public offering of secured bonds. The objective behind this fundraising initiative is to support business expansion and bolster capital resources. These bonds present an interest rate of up to 10.50% and assure a high level …

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What investors need to do to enhance their basic fixed income returns

The most basic, and safe, returns on investments are those derived from liquid funds, or returns from fixed income funds that are of good credit quality. While asset classes such as equities provide better returns, there are ways that conservative investors can enhance their basic returns without taking too much of the incremental risk. The …

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