The international bonds issued in a domestic country by a non-domestic entity are known as Euro Bonds, Foreign Bonds and global bonds. Whether it is a foreign bond, a Eurobond, Global bond or Foreign-Pay Bond or some other format, the investors in these bonds will get back in full the amount originally invested by them…
The Finance Ministry in its communication said that it has decided to keep the interest rate unchanged on small savings schemes for the three-month period beginning April 1.The announcement covers small-saving schemes such as the Post Office Saving Accounts, Post Office Time Deposits, the National Saving Certificates (NSC), the Public Provident Fund (PPF), the Kisan…
The real value of money is based on the concept of time value of money, in that one hundred Rupees of present day is worth more than the hundred Rupees received at a future date. Here, real value of money means what one unit of money is capable of purchasing; in short, its purchasing power.…
Contrasting HTM (held to maturity) securities in which the holder has the intention to hold them until specific date of maturity, ‘Held for Trading’(HFT) investments are the securities that a holder purchases with the intent of selling them within a short period of time, with the sole intent of generating short term profits by taking…
The investment portfolio of the banks are classified under three categories viz. ‘Held to Maturity’, ‘Available for Sale’ and ‘Held for Trading’. Banks take decision to categorise their investments at the time of acquisition of these securities and recorded on the investment proposals of the bank. The Available for Sale (AFS) are debt and equity…
The entire investment portfolio of the banks (including SLR securities and non-SLR securities) are classified under three categories viz. ‘Held to Maturity’, ‘Available for Sale’ and ‘Held for Trading’. Held-to-maturity securities are debt security investments which the holder has the intention and ability to hold them until specific date of maturity. The investments classified under…
A foreign currency convertible bond (FCCB) is a special kind of convertible bond issued in a currency different than the issuer’s domestic currency. Multinational companies and governments routinely issue bonds denominated in various currencies to benefit from lower borrowing costs, and also match their currency inflows and outflows. FCCB gives investors an opportunity to convert…
In simple words, if an investment is held till its maturity date, the rate of return that it will generate will be Yield to Maturity. YTM is the estimated internal rate of return earned by an investor who buys the bond today at the market rate on the assumption that it will be held until…
The Finance Ministry in its notification had communicated that the rates of interest on various small savings schemes for the fourth quarter of the financial year 2018-19 starting 1st January 2019 to 31st March 2019. The interest rate for time deposits for the period 1 year to 3 years is made uniform 7.00% for the…
Investment in ULIP is eligible for deduction under section 80C (life insurance) or 80CCC (pension) of Income Tax Act. A maximum of Rs 1,50,000 is allowed under section 80C/ 80CCC. ULIP is an integrated product of ‘insurance and investment’ developed and marketed by life insurance companies. ULIP offers investors the advantage of both insurance and…