Read more about Gilt funds back on investors radar on RBI s accommodative stance on Business Standard. Scheme category sees net inflows this April, for the first time since last December
Will liquid mutual funds stage a comeback?
High government borrowing outlined by Budget 2021 may push interest rates up sometime this year. This helps liquid funds whose returns have hit rock-bottom levels. February 09, 2021 / 10:53 AM IST
Budget 2021 s indication on high government borrowing has already pushed up yields on debt securities up. Interest rates and bond prices move in opposite direction. Experts say that it’s only a matter of time before interest rates increase.
Liquid funds are typically marketed as a means to park sums for the short term to earn a bit more than savings bank accounts. However, currently, leaving money in saving bank accounts is more beneficial. If you invest regularly in liquid funds, or have money lying in there, then here is what you should do.
Coming soon: Retail investors can directly invest in government securities with RBI
After lukewarm response to its earlier scheme to allow small investors to invest in government securities through stock exchanges, the RBI now allows direct investments.
RBI | Representative Image.
Moneycontrol News
Investing in government securities is set to become easier. In the Reserve Bank of India’s (RBI) monetary policy announcement made earlier today, the RBI Governor Shaktikanta Das said that retail investors will be given online access to the government securities market – both primary and secondary- along with the facility to open their gilt securities accounts –with the RBI. This facility will be called Retail Direct. The details of the facility will be announced later. This is not the first time that the RBI has encouraged retail investors to invest in g-secs. So far, there has been a lukewarm response. But experts predict that the latest move ought to bring in more retail inves