Comprehending and utilizing debt instruments such as bonds is crucial for Indian investors, providing stability, risk mitigation, safety, consistent income, and protection against inflation.
Understanding and leveraging debt instruments like bonds is essential for Indian investors, offering stability, risk management, safety, regular income, and inflation protection.
Vijai Mantri says: “People do not understand the difference between coupon rate and compound rate. So I will just take a very simple illustration. I was part of the HDFC Mutual Fund team when we launched HDFC liquid fund in October 2020. In October 2000, that fund completed 23 years. In a 23-year period the fund generated 6.9% CAGR. If I convert them into simple rates of interest, it is close to 15% per annum.”