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Fed holds rates steady; here's what that means for your wallet

Fed holds rates steady; here's what that means for your wallet

Finance
The Federal Reserve's decision Wednesday to keep interest rates steady came as a relief to many investors. And that trend may continue. The Fed also indicated in a statement that no more hikes likely will be coming this year. In a unanimous move, the central bank's policymaking Federal Open Market Committee took a sharp dovish turn from policy projections just three months earlier. The Fed has already raised the federal funds rate nine times in three years, and those previous hikes are benefiting many consumers in the form of better savings yields. He...
CPSE EFT FPO kicks off: Should you subscribe?

CPSE EFT FPO kicks off: Should you subscribe?

Finance
NEW DELHI: The fifth tranche of Central Public Sector Enterprises Exchange Traded Fund (CPSE ETF), managed by Reliance Mutual Fund, kicked off for non-anchor investors on Wednesday. Analysts said high dividend yield, low P/E ratio and discount are key attractions, but believe the issue is not suitable for first-time investors. The issue received an overwhelming response from 16 anchor investors, who bade for Rs 6,072 crore worth of ETFs, 5.78 times the base size. The government intends to raise at least Rs 3,500 crore. A discount of 4 per cent will be offered to investors on the reference market price of the underlying Nifty CPSE Index shares. Here are key things you must know about the issue: Sectoral & stock concentrationRisks associated with sectoral concentration are high. Oil a...
China's tech-savvy millennials are fueling interest in US stocks

China's tech-savvy millennials are fueling interest in US stocks

Finance
As China's technology companies have become some of the largest in the world, they're influencing the investing habits of their employees and customers, and spurring a new business of online stock trading. Real estate remains by far the hottest investment in China, but young people are increasingly turning to new smartphone apps to trade stocks. Those are often shares of familiar Chinese tech giants such as Alibaba, or the host of other homegrown companies that have chosen to list in the U.S. or Hong Kong. China's domestic online retail securities market is already the largest in the world. For offshore assets, consulting fir...
Investors should always have gilt funds in their portfolio, says Prashant Pimple of Reliance MF

Investors should always have gilt funds in their portfolio, says Prashant Pimple of Reliance MF

Finance
Gilt funds are suitable for investors with absolutely no appetite for credit risk and with willingness to stay invested for three to five years or more, says Prashant Pimple, fund manager, Reliance Gilt Fund. Edited Interview Gilt funds are giving an average return of 8.23 per cent in one year. What contributed to it? Last year gilts as a category has outperformed most of the asset classes as yields on G-secs fell on account of Open Market operations (OMO), under which RBI buys G-secs from market to provide liquidity, rate cut of 25 bps by RBI and lower inflation readings. The 10-year G-sec yield made a high of 8.15% on supply worries in Sep 2018 but as RBI conducted more and more OMOs and followed by rate cut and further expectations of rate cuts markets took comfort with yields trading ...