A bond is a popular investment option for a person having limited appetite for risk or wanting a steady source of income. If you are looking at investing your funds towards an instrument that can give you a fixed income and lesser volatility, investing in a bond is a good choice for you. What is […]

Introduction Economic growth for a country is led by public investment done by the government and private investment done by companies. This requires money (or capital) from other people; as owners themselves may not have all the resources to invest in growth. Traditionally in India, banks have been the primary source of capital for firms. […]

Introduction Most people are comfortable with the idea of a plain bond: lend money, get interest back, and receive principal at the end. A collateralized debt obligation sounds far more technical, but the idea becomes friendly once it is broken into everyday terms. Imagine a big basket filled with many loans and bonds. Instead of […]

Introduction Investors are diligently looking for the necessary and sufficient information regarding their investment goals and the financial instruments they have chosen. Bond investments have been the talk of the town in recent years, and sufficient information is being made available through numerous means. However, some early investors are still unclear about the notions of […]

Introduction Everything has a price, and every price has its return. Fixed Deposits (FDs) are the embodiment of safety for Indian investors. They have existed since the time of our grandparents and parents and have been their preferred choice for savings. For a more in-depth look at ‘Why Your Parents Chose Fixed Deposits,’ click here. […]

The meaning of fixed income instrument in financial markets is as simple as the definition of the word itself – you get a prescribed income from this which is mostly fixed (decided) at the time of investment and when held till maturity of the instrument. For those of us who are interested in receiving a […]

In everyday life, a “floor” is something that supports you — it’s the base you stand on. In finance, the idea isn’t much different. A floor simply means a minimum value something shouldn’t fall below. Whether it’s interest rates, returns or the price of an asset, having a floor helps protect investors from bigger losses. […]

Introduction In everyday life, people make small informal “forward contracts” all the time without calling them that. A shopkeeper might agree today to supply sweets for a wedding next month at a fixed rate. A landlord may lock in the rent for the next year. A farmer might promise a local trader a part of the coming harvest […]

Introduction The Liquidity Adjustment Facility is a daily window through which the central bank adds or absorbs short term money from banks. It helps anchor overnight rates, keeps liquidity orderly, and signals policy intent. When conditions are tight, the tool supplies funds. When money is surplus, it soaks up liquidity wisely. What Is a LAF? […]