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Debt Funds | Portfolio Yoga

Tagged: Debt Funds

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Random thoughts around Debt Funds

When you make a deposit at a Bank, you are paid a certain percentage of interest. But if you take a loan from the same bank, you pay a much higher rate of interest than what an investor gets paid. This in financial parlance is called “Net Interest Margin”.  This margin is what makes running a bank attactive. Higher the...

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Debt – Invest in Long Term Funds or Short Term

In 1996, IFCI came out with Family Bonds. OF the many options it provided, one that interested me and one I had my family invest was Millionaire Bonds (Option 1) with a face value of 10,000 per Bond.  As the name itself proclaimed, an investment of Ten Thousand would result in a final maturity amount of 1 Million. The investment...