Do not buy Government Securities (G-sec) from retail platforms (Zerodha, NSE goBID)

Here is why you should not buy G-secs (Government Securities) from retail platforms like Zerodha and NSE goBID and keep it simple with fixed deposits or debt mutual funds. Even if you wish to buy G-secs at the very least give several months for the platforms and the process to evolve before committing money. So…

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Why are PPF and Sukanya Samriddhi interest rates still so high?!

The government announced the interest rates for small saving schemes yesterday and surprising or should I say unsurprisingly, the interest rates of many schemes, especially the long-term ones like PPF and Sukanya Samriddhi are still too high! Why is the government not sticking to policy? If you are surprised by the title in spite of…

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Sovereign gold bonds: What you need to know before buying

Here is what you should know before buying¬†sovereign gold bonds either in the primary market (when the next tranche is released) or secondary market (1st tranche issued in Nov 2015). In my opinion, there is only one thing that someone buying paper gold should know:¬†just how volatile returns can be!! The fin min says They…

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Term spread as a macroeconomic indicator

A discussion on how the term spread, which is the difference between the 10-year & 3-month government bond yield, can be considered as a macroeconomic indicator A macroeconomic indicator is one which gives an indication about the current state and future trend in the economy.¬†Macroeconomic indicators can be used to change the asset allocation in…

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Do not buy Sovereign gold bonds If you don’t know when to exit!

Here is why one should not buy the sovereign gold bonds which are on sale from Since Nov. 5th 2015, despite ¬†the sovereign guarantee and the 2.75% interest rate. From today (5th Nov. 2015),¬†Sovereign gold bonds ¬†will be available for subscription at an issue price of Rs. 2,684 per gram. ¬†Subscribers can buy bonds which…

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