Raj Khosla, Managing Director and Founder, MyMoneyMantra says, “The major drawback in a fixed rate home loan is that if the interest rate remains benign or drops further during the tenure of the loan, you will not get the benefit of reduced interest rates as banks will not change the fixed interest rate while you are servicing a loan.” At present, despite massive cuts, nobody can tell exactly how far interest rates can go down. … [Read more...] about Why floating rate home loans hold an edge over their fixed interest peers
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The fact that Africa's most developed country for the first time approached the IMF for a loan is the latest sign of pain. Unemployment is above 30 percent and rising, and major state-owned enterprises were already in poor shape. … [Read more...] about Coronavirus pandemic | IMF approves $4.3 billion emergency loan to South Africa
Account holders of India's largest lender State Bank of India (SBI) can check their account balance by giving a missed call or sending an SMS. They can do so from their registered mobile number on the SBI balance enquiry toll free number - 9223766666. … [Read more...] about How to check SBI balance via missed call or SMS
Although the RBI kept the repo rate (4 percent) and the reverse repo rate (3.35 percent) unchanged, governor Shaktikanta Das said that the monetary policy committee’s stance is ‘accommodative.’ Thus, the RBI is open to making reductions in interest rates later, if found necessary for reviving growth and overcoming the impact of COVID-19 on the Indian economy. When interest rates fall, prices of bonds – and therefore the net asset values of debt funds invested in them – rise. So far, the RBI has reduced policy rates by 250 basis points since February 2019 and Das added in his statement that rate cuts have been working, in the sense that transmission of lower interest rates have happened thanks largely to liquidity conditions it induced, despite banks remaining averse to lending. When interest rates are kept unchanged with the possibility a decline later, it’s best to stick to your debt funds. … [Read more...] about Status quo on rates: Stay put with shorter-tenure debt funds
Equity schemes that got sold at online platforms such as Groww (for the month of July) and Kuvera (sales in the past three months) suggest that many of their customers have invested in recent outperformers. Examples include Nippon India Pharma, Parag Parikh Long Term Equity, Tata Digital India and Mirae Asset Emerging Bluechip. Incidentally, many of these funds have also done well in the past one year. The question is: do DIY (do-it-yourself) investors opt for these schemes as they suit them the most or are they just chasing recent performance? … [Read more...] about Direct plans of MFs: Lower costs, but can DIY investors make the right choices?