Latest news with #PreetiZende
Mint
7 hours ago
- Business
- Mint
Should you lock your FD before banks cut their interest rates? These 6 lenders offer highest rates on fixed deposits
With repo rate declining to 5.50 percent after RBI's monetary policy committee (MPC) cut the repo rate for the third consecutive time on June 6, banks have followed suit. A number of bankss have already slashed their lending rate after RBI's rate cut. Not only lending rates, even the fixed deposit (FD) interest rates are also set to move southward in the wake of repo rate cut. Consequently, depositors are recommended to lock their savings into fixed deposits (FD) before the rates are cut again. So, if you are exploring the idea of opening a fixed deposit, you may check the interest rates offered by top banks both private and state. 'There may be one more cut of 25 basis point in next 6 months and so which will lead to further reduction in FD interest rate. So if you need money for your short term goals of 1 to 3 years and make the FD as soon as possible. But make a note that putting more money in FD blocks your money at the lower rate,' says Preeti Zende, founder of Apna Dhan Financial Services. I. State Bank of India (SBI): SBI's highest interest rate of 6.7 percent is offered on a deposit with two to three-year tenure. On one-year tenure, it offers 6.5 percent interest. These rates came into force on May 16, 2025. II. HDFC Bank: HDFC Bank offers highest interest rate of 6.85 percent per annum to general citizens on a fixed deposit tenure of 15-21 months. Senior Citizens are entitled to receive an extra 50 basis points. These rates came into force on May 23, 2025. III. ICICI Bank: ICICI Bank offers highest interest of 6.6 percent to general citizens on a tenure of 2-5 years. Senior citizens are entitled to receive 7.1 percent per annum. IV. Union Bank of India: Union Bank offers highest rate of 7.15 percent per annum on a tenure of 456 days. These rates came into force on April 25, 2025. V. Bank of Baroda (BOB): Bank of Baroda offers highest interest rate of 7 percent on the deposit of 444 days (BOB Square Drive Deposit Scheme) to general citizens. Senior citizens are entitled to receive an extra 50 basis points. These rates came into force on May 29, 2025. VI. Kotak Mahindra Bank: Kotak Mahindra Bank revised its interest rates and now the highest interest rate of 6.6 percent is offered on a tenure of 391 days to 23 months to general citizens and an extra 50 basis points to senior citizens. For all personal finance updates, click here
Mint
15-05-2025
- Business
- Mint
Should you invest in index funds when the market is on a downswing? Experts speak
Stock markets have characteristically been volatile in the past few days. After delivering the best session of four years on Monday by rising 3.7 percent, Sensex dropped 1.6 percent on Tuesday. In the last two sessions of the previous week, Indian markets lost $83 billion in market cap on the India Pakistan conflict following Operation Sindoor. This decline and rise followed by another fall has left retail investors spooked and gobsmacked. Experts, therefore, recommend retail investors to contemplate passive investing. One way to follow passive investing is to invest in index mutual funds. For the uninitiated, index funds invest in those securities, which constitute popular indices such as Nifty50, Sensex30, Nifty100 -- that too in the same proportion as in these indices. 'Index funds track a specific market index, and historically, markets tend to recover after periods of decline. So, when you invest in an index fund, you can benefit when the market turns upwards. They also provide broad diversification across various sectors, themes, and stocks, so they help reduce the risk of concentrating investments in a few companies when the market is volatile,' says Preeti Zende, a Sebi-registered investment advisor. Experts believe that investing in index funds when the market is down is a no brainer strategy for long term investing. 'An index fund is a passive fund that replicates the performance of a specific market index. When there is a volatility and the future is uncertain due to various domestic and foreign issues, geopolitical scenarios in this case, retail investors normally get confused about the investment ideas, in this case, investing in a simple Nifty index can solve the confusion.' adds Zende. Santosh Joseph, CEO of Germinate Investor Services argues that the investors should use the opportunity to invest during a downswing. 'While any market downswing presents an investment opportunity, it's not always easy for investors to act on it. There's often a dilemma—what fund to choose, which category or sector, and which specific area to invest in. In contrast, index funds offer a broader and more participative opportunity,' he says. 'If you invest in an index fund, you at least benefit from the overall performance of the index. You may not get the best returns, but you'll likely capture a significant portion of the gains,' he adds. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie. We advise investors to check with certified experts before making any investment decisions. Visit here for all personal finance updates
Mint
08-05-2025
- Business
- Mint
Operation Sindoor: Should mutual fund investors brace for impact or stay the course?
The Indian government's bold military response—Operation Sindoor—in response to the Pahalgam attack on April 22 has created understandable jitters in financial markets. However, history offers a reassuring narrative for long-term investors, especially mutual fund participants. The immediate impact of any political upheaval is seen instantly in the stock markets. However, mutual funds are relatively safer investments since they invest in a range of stocks, sectors and asset classes, thus diversifying the risk. So, investors of mutual funds are generally in a sweet spot vis-à-vis stock investors. Here's a data-backed breakdown of how markets have behaved during past conflicts and how you should approach your mutual fund investments now. Historically, India's capital markets have shown short-term volatility during military conflicts but have bounced back strongly over time. Below are key examples: Event 1 month before During conflict 1 year after Kargil War (1999) -8.3% +36.6% +29.4% Uri Surgical Strike (2016) -0.3% +0.4% +11.3% Balakot Airstrike (2019) +0.8% -0.4% +8.9% Source: MFI Explorer (Compiled by Kotak Mutual Fund) Even in the case of full-blown wars like Kargil, market corrections were temporary. Within a year, investors were well-compensated for staying invested. Although stock markets recovered, macroeconomic indicators did reflect some pressure—mainly inflation and fiscal deficit. War GDP (%) WPI inflation (%) Fiscal deficit (%) Kargil War (1999) 6.18 → 8.85 5.90 → 3.30 9.10 → 9.20 1962 Sino-Indian War 3.72 → 2.93 0.24 → 3.80 2.93 → 3.99 1965 Indo-Pak War 5.99 → 7.45 6.17 → 10.98 4.86 → 5.72 1971 Bangladesh War 3.30 → 1.19 5.54 → 5.60 2.38 → 6.82 Source: IMF, RBI, Sunidhi Research (Compiled by Kotak Mutual Fund) Inflation tends to spike and fiscal discipline gets challenged in prolonged conflicts, but India's GDP has demonstrated resilience across these timelines. In the wake of Operation Sindoor, investors might feel a natural urge to react swiftly to protect their portfolios. However, data and market behavior suggest that a calm, disciplined approach often outperforms impulsive decision-making. "SIP works on rupee cost averaging method. It means over a long period of time, your cost of purchase becomes average due to the bear and bull market and your investments become less volatile in comparison to lumpsum investments. Volatility is the part and parcel of equity investments. Investors should stay put in such volatility rather than converting their notional loss into permanent loss. Therefore, you should continue your SIPs and focus on long term wealth creation," says Preeti Zende, a Sebi-registered investment advisor and founder of Apna Dhan Financial Services. 1. Continue SIPs: Systematic Investment Plans (SIPs) are built to withstand volatility. They capitalize on rupee-cost averaging—meaning you buy more units when prices fall and fewer when they rise. This smoothens the cost over time and ensures you don't try to time the market, which rarely works. Example: An investor who continued their SIP through the 2016 Uri Strike and 2019 Balakot Airstrike periods saw handsome gains a year later. Market dips turned into opportunities for wealth accumulation. 2. Top-up SIPs: If you have surplus cash and a long-term horizon (5–10+ years), consider increasing your SIP amounts temporarily. This is akin to buying quality assets at a discount, especially in fundamentally strong equity funds. 3. Staggered lumpsum investments: If you've recently received a bonus, sale proceeds, or idle funds, avoid putting it all into the market at once. Break it into 3–6 tranches over the next few months. This strategy cushions you from near-term volatility and helps ride the market's recovery phases. 4. Rebalance if needed (not panic sell): If your asset allocation has skewed heavily toward equity or debt due to market movements, consider rebalancing. But do it in a planned manner, ideally under a financial advisor's guidance—not as a knee-jerk reaction. 1. Avoid panic selling: Emotional selling during sharp market corrections often results in crystallizing losses. Many investors who exited during COVID-19's market crash in March 2020 missed the V-shaped recovery that followed just months later. 2. Don't stop SIPs: Pausing or stopping SIPs during turbulence undermines the whole purpose of long-term investing. Even skipping a few SIPs can lead to a substantial difference in final corpus due to missed units at lower NAVs. 3. Don't overcorrect portfolio allocation based on headlines: Geopolitical tensions, while serious, typically create temporary distortions. Avoid completely shifting to debt or gold just based on fear. Stick to your original investment strategy unless your financial goals have changed. Disclaimer: Mutual fund investments are subject to market risks. Consult your financial advisor before making decisions.
