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Time to get into debt funds: Which ones should you pick? – Times of India

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6 days ago

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Time to get into debt funds: Which ones should you pick? – Times of India


The interest rate cuts by the RBI and falling inflation have boosted returns of debt mutual funds. Find out which category of debt fund should you buy now
Debt funds are on a roll, thanks to the rate cuts by the RBI and the decline in inflation over the past few months. A cut in interest rates is beneficial for debt funds holding bonds of higher coupon rates.Funds that line their portfolios with very long term bonds are the biggest gainers when bond yields start moving southwards. The average long duration fund has shot up 2.65% in the past one month. The best performing scheme, Aditya Birla Sun Life Long Duration Fund has risen 3.11%. The average maturity profile of the bonds in its portfolio is more than 26 years.
Experts feel the good times will continue. Bond yields have declined from In February, the RBI had cut the repo rate by 25 basis points to 6.25%. Last week, it further cut the rate by another 25 basis points and shifted its stance from “neutral” to “accommodative”, which leaves the door open to further rate reductions if necessary.
The change in stance also reflects the central bank’s assessment of the economic growth and inflation in the coming months. However, experts are divided on whether this will translate into more rate cuts. Some expect the RBI to reduce the repo rate by another 25-50 basis points during this financial year while others believe there will be an extended pause.

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Given this situation, short duration funds seem like a good bet right now. These schemes invest in bonds with a residual maturity of 18-24 months. The short maturity profile makes the interest rate negligible. Go for short duration funds if you want stable returns.
Investors who believe that the RBI will indeed cut rates can go for medium term or long duration bonds. As explained earlier, these funds will be the biggest beneficiaries when rates decline. Long-term bond funds delivered double-digit returns in the past one year. However, if rates don’t fall as expected, these funds could give muted returns.
Can’t decide whether to go for short-term funds or long duration schemes? Why not opt for dynamic bond funds? Debt funds are required to invest in bonds of certain tenures as per their mandate. But dynamic bond funds have the flexibility to alter the average maturity profile of their portfolio as per the reading of the fund manager. Dynamic bond funds have done better than short and medium term debt funds in the past one year.





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Pune company loses Rs 6.5 crore in cyber fraud – Times of India

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3 hours ago

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April 24, 2025

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Pune company loses Rs 6.5 crore in cyber fraud – Times of India



PUNE: Man-in-the-Middle (MitM) cyber frauds cheated a Pune-based firm, dealing in IT services and imports of dry fruits, out of Rs 6.5 crore on March 27.
MitM is a type of cyber fraud in which an attacker intercepts and relays communication between two parties, making it appear as if they are communicating directly.
As per the police complaint, the 39-year-old company director received an email on the company ID purportedly from a US firm he did business with about a payment request. He initiated the transaction believing the email request was legitimate. But later, when he contacted officials of the other firm, they denied receiving the amount. He checked the email he had received and discovered fraudsters had made two alterations – they changed one letter in the other firm’s email address and its bank account number.





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LIC to expedite claim settlements of Pahalgam terror victims

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8 hours ago

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April 24, 2025

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From The Hindu, April 25, 1975: Israel’s independence — Soviet offer


Life Insurance Corporation of India (LIC) on Thursday (April 24, 2025) announced that it will expedite claim settlements of Pahalgam terror attack victims in an effort to provide financial relief to their families.

Expressing deep grief over the death of innocent citizens in the terrorist attack, CEO and MD Siddharta Mohanty said LIC has decided to offer concessions to mitigate the hardships of the claimants.

In lieu of death certificates, any evidence in government records of death of the policyholder due to the terrorist attack or any compensation paid by the Union or State governments will be accepted as proof of death. All efforts will be taken to ensure that the claimants are reached out to and claims settled expeditiously to the affected families,” he said in a release.

For assistance, the claimants may contact the nearest LIC branch, division, or customer zones. They may also call LIC call centre at 022 68276827, the company said.

Insurance aggregator Policybazaar said it would like to offer a job to a family member in any of the Policybazaar or Paisabazaar offices located across India or sponsor a child’s education for every impacted Indian family in Pahalgam. “It is a very small gesture towards creating a social security cover for these families,” co-founder Alok Bansal said in a social media post.

Published – April 24, 2025 11:26 pm IST



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Like Voda Idea, now Airtel looks to convert govt’s statutory debt with equity swap – Times of India

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8 hours ago

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April 24, 2025

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Like Voda Idea, now Airtel looks to convert govt’s statutory debt with equity swap – Times of India


NEW DELHI: In a significant development, Bharti Airtel is understood to have approached the govt for swapping its statutory dues with equity, something that has been done in the case of beleaguered Vodafone Idea.The company is understood to have outstanding govt payment dues of over Rs 70,000 crore, including Rs 40,000 crore of AGR dues.
Sources said that Airtel believes that the measure will help it conserve cash, while also enabling the govt to be a part of a fast-growing enterprise which carries prospects of a growth in share price and resultant valuations. “A proposal to this effect is understood to have been submitted to the department of telecom,” a source said.
Airtel has not officially commented on the matter as yet.
The formula to swap the outstanding statutory payment dues with equity had been initiated by the department of telecom to help the industry, particularly loss-making Vodafone Idea tide over the financial challenges and continue as a going concern.
Airtel’s current market cap is around Rs 10.5 lakh crore, as per the details on the Bombay Stock Exchange. The company will need to transfer around 6% equity to the govt to clear its statutory dues. Shares of Airtel closed the day at Rs 1,845 on the BSE, down 2%.
Market analysts believe that govt has “a chance of realising positive returns” from the Airtel equity, considering that the company has been growing in profitability. This will be unlike Vodafone Idea where the value of its stake value has so far only fetched negative returns with the company’s scrip remaining below Rs 10 for most of the period of govt’s holding.
Govt had converted the Voda Idea statutory debt into equity at a price of Rs 10 per share, which is the face value. The current price of the company’s share is Rs 8, down one per cent at close on Thursday.





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