Bond yields have been dropping rapidly since the demonetization announcement. As a result, the NAV of long-term gilt mutual funds has been on the increase. At a time when many investors want to benefit from this move, Mr Srinivasan Sundarajan, in this third guest post, cautions to look before you leap.
About 10 days ago, SBI announced its decision to slash the interest rate for deposits, post the huge fund flow from the demonetization scheme. In fact, they published interest rates less than the Savings Bank deposit rate of 4% for bulk fixed deposits.