The Importance of the September 2014 Monetary Policy

Posted by: Deepa Vasudevan on Wed, Oct 1st, 2014

The September 2014 monetary policy clearly signals that RBI will focus on controlling inflation. Its willingness and ability to reduce interest rates will depend on government actions towards supply side reforms, fiscal consolidation and measures to revive the investment cycle. Read more

The Statistical Truths in GDP growth

Posted by: Deepa Vasudevan on Fri, Sep 12th, 2014

Real GDP grew by 5.7% during the quarter April-June 2014, at the highest quarterly growth rate since 2012. However, as the economy emerges from several quarters of poor growth, it is important to recognize the impact of a low base in giving a statistical boost to GDP growth. Read more

Can Bank Credit Provide Enough Impulse to Investment?

Posted by: Deepa Vasudevan on Wed, Sep 3rd, 2014

The change in the flow of bank credit, or credit impulse, is better able to predict recoveries from a recession as compared to other credit variables. Data shows that though bank credit growth is poor, the credit impulse is rising. This suggests a strong possibility of a revival in investment. Read more

Debt Funds and FMPs- What Now? Part 2- Why Tax Can't be Avoided

Posted by: Uma Shashikant on Sun, Aug 3rd, 2014

This is the full story. There is no real tax arbitrage in a debt fund any more.  SWP or STP, the tax is all the same as long as holding period is less than 36 months.  Read more

Debt Funds and FMPs - What Happens Now?

Posted by: Uma Shashikant on Mon, Jul 28th, 2014

After the amendment to the Finance Bill, debt funds redeemed after July 10 will be subject to new tax rules. What are the choices for investors in FMPs and debt funds?  Read more