Look for spikes in bond yields to shift from short-term debt funds to long-term debt funds. If you wish to invest in fixed deposits, prevailing rates are attractive. Do not chase yields as it may indicate higher credit risk.
Government security, or g-secs, come with very little to negligible credit risk. But some g-secs are liquid, mostly the 10-year benchmark. However, long-term government bonds are generally bought by institutional investors, not so much by individual investors. Here’s a look at its prospects.
Aditya Birla Finance has the room to raise as much as ₹2,000 crore through the NCDs issue, which opens on September 27 and closes on October 12, with an option to close early on account of oversubscription. The instrument, which has the highest AAA credit rating, has a face value of ₹1,000 apiece and investors need to apply for a minimum of 10 NCDs worth ₹10,000.
India Business News: Aditya Birla Finance's Non-Convertible Debentures (NCDs) come with three, five, and ten-year tenures, offering investors annual interest rates of 8%,