Number of the week: 21%

Business Standard
12th September

21%: The long-duration debt funds category has returned 20.81 per cent returns over the past one year.

  • There are, however, only two funds in the category. Reliance Nivesh Lakshya Fund has a one-year return of 23.68 per cent, and ICICI Prudential Long Term Bond Fund has 18.35 per cent.
  • These are returns of regular schemes, which have agent commissions.
  • Bond prices are inversely proportionate to interest rates. As interest rates are declining, bond prices are on the rise.
  • According to the Securities and Exchange Board of India (Sebi)'s guidelines, long-duration debt funds have to keep an average portfolio maturity of over seven years.
  • Funds that have a higher portfolio maturity are also more volatile. Investors should avoid them entirely unless they have an advisor who understands interest rate movement and can suggest when to enter and exit these schemes.

Disclaimer: This information is from a third party—Business Standard—offered through a tie-up to Kotak Securities customers for free for life. The third party content is not created or endorsed by any business offering products or services through it. The provision of this third party content is for general informational purposes only and does not constitute a research call, recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Also, the views and opinions stated in the content belong to Business Standard. Kotak Securities does not uphold nor promote any of the views. These reports do not, in any way, qualify as a Kotak Securities research report.

A few links for further reading

Invest and emigrate

The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.

Small savings schemes

Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.


Rs 10,000: Enhanced withdrawal limit allowed by RBI to customers of PMC Bank.

Want to get this in your email?