Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: list of goods taxed at 4% :: VAT RATES :: empanelment :: articles on VAT and GST in India :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: TDS :: ACCOUNTING STANDARDS :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« General »
 Supreme Court agrees to hear plea on imposition of service tax on lawyers
 India's tax department signs 3 advance pricing agreements
 Income Tax Dept to probe deeper into suspicious bank accounts
 Modi may lower taxes to spur demand in his budget sops
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week

FMPs (fixed maturity plans) offer the best option among debt funds, With RBI rising rates
August, 01st 2011

The RBI's sharp interest rate hike has raised some questions about the impact of its move on fixed income mutual funds. There has no doubt been an impact, but it's more in the nature of confirming and cementing an existing situation rather than resulting in any new change.

Certainly, whenever interest rates rise, there is an impact on the price of debt securities and, thus, there should be a fall in the NAVs (net asset values) of funds that are holding these securities. Currently, rates have been on their way up steadily since February 2010, and no one can realistically say with any certainty when and where this trend will halt or reverse. The finance minister himself has said that this may not be the last hike.

However, the impact of rate hikes is proportional to the residual maturity of the securities. For securities that are maturing within a few weeks or months, the impact is minimal. And, as it happens, the fixed income mutual fund market has moved decisively away from long-maturity securities a long time ago. While the magnitude of the RBI's rate hike may have been a bit of a surprise, its general direction was exactly as expected and was part of a longestablished trend.

For more detail click below

Source:http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/with-rbi-rising-rates-fmps-fixed-maturity-plans-offer-the-best-option-among-debt-funds/articleshow/9436499.cms

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions