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@Nsingh out of all of the money parts eligible in zeordha , I discovered SGBs are higher positioned.
you’ll get obligatory 2.5% curiosity every year + Gold return .
Additionally gold acts as full hedge in opposition to the fairness and within the longterm Gold offers higher return than any of the liquid / debt funds.
@Nsingh @siva0 actually I used to be going to check with you about SGB. In every tranche, I’m investing some cash in SGB and taking out cash from (pledged) liquid funds. The one function to spend money on liquid funds for me was to get cash-equivalent margin. If the gold costs stay so, or go down I’m planning to interchange 2/3 of my money equal pledged devices (I.e liquid funds) to SGB.
Liquid bees is an alternative choice however ineffective for my part.
@Jason_Castelino i checked cash market funds. They seem to have 0.5% extra returns than liquid fund. Any extra benefit in your opinion?
The choices we’ve for money part is Liquid funds, cash market funds, Gilt funds, Authorities Securities and SGB.
- Liquid funds returns are on a decrease facet.
- Gilt funds are unstable
- SGB funds would not have sufficient liquidity if I’ve to purchase in secondary market. So I’ll lose out on a small half due to bid ask Unfold. I don’t like to purchase it straight on the time of concern as a result of I’ve to attend for two months to pledge them. So there is a chance foregone. Additionally if I need to promote these models to cowl mark to market losses, then once more there’s liquidity downside and it wont be buying and selling at its honest worth.
- Liquidity downside in authorities bonds.
So for the entire money part that is how I’ve taken publicity.
- SGB – 20% (I purchase from second market and can maintain until muturity.
- Gilt funds -20% (Over a interval of 5 years, I’m of the opinion, it can beat cash market funds. Wont redeem them for lengthy.)
- Cash Market Funds – 60% (Regular return often. So can redeem when I’ve to cowl M2M losses. )
Additional I unfold it in 2 totally different AMCs as a result of I need to reap the benefits of LTCG. For all changes I exploit one among them.
No matter I’ve talked about above, is solely primarily based on my expertise in FNO phase in 2 years. Please be happy to share your views.
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Is there any benefit / drawback of shopping for Bharat Bond FOF Mutual fund vs shopping for the bharat bond ETF?
In Bharat bond etf the coupons are reinvested,can I see and observe this reinvested half in Zerodha kite?proper now i can’t see the reinvested half in kite @ShubhS9 @Bhuvan @nithin @siva
When the coupons are reinvested, the NAV goes up. That’s how the reinvestment works. In the event you nonetheless need to observe this, ask the AMC or get the listing of the underlying bonds and observe their coupon funds.
The NAV and no of models haven’t but elevated after I checked my kite console and in Bharat bond they reinvest the coupons on the finish of the FY which is march @Bhuvan however I acquired an electronic mail from edelweiss displaying the curiosity for final FY.
Items don’t enhance, the coupon funds present up within the NAV.
It has decreased really @Bhuvan
however I acquired an electronic mail from edelweiss displaying the curiosity for final FY.
Please take a look and assist me @Bhuvan @nithin @siva
NAV doesn’t all the time go up It’s affected by rates of interest, demand and provide. Within the final 6+ months have been dangerous for bonds and bond funds due to rising inflation and the expectation of charge hikes. Like I discussed, the coupons are added to the NAV. However in case you nonetheless need a detailed breakdown, you’ll need to ask the AMC, they’ll present it.
My unique qty invested is 2428 models and present NAV is 25.8lakhs and If u intently observe the above screenshots u can see that the NAV is 25.8 lakh which is 2428*LTP rs1062.so there isn’t a web enhance in nav which signifies that the curiosity acquired isn’t reinvested but.i contacted each edelweiss( the fund supervisor)and Zerodha to resolve the identical and no person may assist.please assist @Bhuvan @ShubhS9 @nithin @siva
It looks as if you might be unaware of how bonds and debt funds work. I’d counsel you learn this chapter first. Curiosity is reinvested and add to the NAV, however on the identical time the NAV can fall due to rates of interest actions, inflation and many others, which is why the value of Bharat Bond ETFs have fallen! You have got invested in 2031 maturity ETF, which has the very best period danger. In easy phrases, longer the period, increased the possibility of a bond/ETF going up or down on account of rate of interest actions, inflation and many others.
Which suggests the curiosity is reinvested in the identical underlying property of the Bharat bond (which is gov firms ) however as a separate fund .so the qty in my portfolio received’t enhance,it can stay the identical however the NAV will replicate the positive factors in these investments…am I appropriate @Bhuvan
Which suggests the curiosity is reinvested in the identical underlying property of the Bharat bond (which is gov firms ) however as a separate fund .so the qty in my portfolio received’t enhance,it can stay the identical however the NAV will replicate the positive factors in these reinvestments…am I appropriate? @Bhuvan @nithin @siva @ShubhS9 @Bhuvan
What’s cash markets?
Do you imply treps the place I sorta have concept that banks or RBI borrow cash and provides a govt bond after which purchase again at the next value or one thing.
Any instance ETF or fund for cash markets ??
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