Other than banks, Post Office schemes are the most commonly invested contractual-return products in the fixed income world. The various investment avenues offered by Post Office in India include: 1. Recurring Deposits 2. Time Deposits 3. Monthly Income Schemes 4. National Savings Certificates (NSCs) 5. Senior Citizen Savings Scheme. We will briefly discuss the features of each one of them. [...]
Fixed Income Securities available in India! Yield: Simply put, 'Yield to Maturity' (YTM) or yield for short is the annualized return that you will earn if you invest in a fixed income security today and hold it till maturity. It's not a simple rate of return but takes into account the effect of compounding. When comparing alternative investments, yield is [...]
The following article will guide you about how to mitigate interest rate risk. Introduction: Of the two components of interest rate risk, price risk can have a sudden and dramatic impact on your fixed income portfolio. The reinvestment risk is slow and long drawn in its effects. In the long run, interest rate scenarios change and you will most certainly [...]