is red hot, but anti-trust concerns in the trading platform space and dominant incumbents in the custodian sub-sector has meant deal activity as a whole has been uneven. By, guy Potel, fintech M A volumes and values soared in H1 2018 as banks embraced fintech as a key enabler of operational efficiency and customer satisfaction. UK consumer crunch,. In this scenario, assuming you hold the bond till its maturity date, you will receive 2 coupon payments of 3,000 each, for a grand total of 20 coupon payments for 60,000. Additionally, it allows you to compare bonds of differing terms, such as a 10 year bond paying 5 and a 30 year bond paying. Equity depends on FIIs, though domestic inflows are strong now, the Indian equity market sentiment is still dependent on FII inflows. Current yield gives you a snapshot of the relationship between the current price of the bond and the current coupon payment. Positive for India in short term.
To truly understand bonds, you need to have an understanding of a few key metrics that will help you analyze a bond price more accurately.
The discounted cash flow model is used to reduce the value of future earnings in order to get their present value.
Due to global inflows, Indian equities and domestic gold usually move in opposite directions. For instance, the European Central Bank (ECB) has declared a long pause in its rate hike plans and announced a new quantitative easing measure to stimulate the economy. This interest rate is calculated as a percentage of the par value or the initial investment amount. There is no expense ratio, an additional interest payment and tax-free capital gains if held till maturity. With the weakening US economy, this money will start flowing out, says Kumar. The exposure to gold should be minimal (around 5 of the portfolio says Saraogi. Yield to Maturity (YTM yTM is the most powerful yield measurement, as it aggregates all cash flows into one number providing you with an internal rate of return (IRR) which includes: coupon interest, interest on interest, and the difference between purchase price and redemption price. Rupee may not weaken also because of the higher forex reserves now, says Iyer. But experts feel this will not impact FII inflows. Shah of BNP Paribas MF concurs with this view. Private equity and venture capital houses continued to invest aggressively in the space, buoyed by a series of strong exits and growing buyer demand.