Home / Finance / Personal Finance / New bond offers must fit into your portfolio

New bond offers must fit into your portfolio

Check if you need to invest in the asset class to which the bond belongs, then see if the bond has the right risk-return profile

Premium

3 min read Last Updated : Mar 28 2021 | 8:23 PM IST

“Should I invest in the bond issue of XYZ Finance Limited, which is paying 10 per cent?” Or, “Should I invest in the corporate deposit of ABC Housing Finance Limited?” These are questions I am asked often in the current low interest-rate environment.

This is the wrong question to ask. It is a bit like asking if a particular brand of tyre is suitable as a replacement tyre for your car. One cannot answer this question without knowing the kind of journeys you undertake, the destinations you want to reach, the kind of roads you will encounter, the kind of driver

Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in