Fixed Income

Fair price shops dealers held a protest here at Jantar Mantar on Wednesday demanding a minimum income guarantee of Rs 50,000 per month and a continued supply of food grains under the old Prime Minister's Garib Kalyan yojana (PMGKY) Scheme. The protesters from All India Fair Price Shop Dealers' Federation (AIFPSF) had come from different states and gathered at Jantar Mantar. The body's national general secretary Biswambhar Basu said that they demand a continued supply of food grains under the old PMGKY scheme as before and a minimum monthly income guarantee of Rs 50,000. The organisation came with a roster of 11 demands in all. Among its other demands were a minimum margin of Rs 764 only per quintal and allowing the fair price shop dealers in rural areas to function as direct procurement agents (DPA) for rice and wheat.

Mutual funds focussed on investing in fixed-income securities witnessed an outflow of Rs 13,815 crore in February, making it the third month of withdrawals in a row despite expectations that the rate hike cycle was nearing its end. In comparison, such funds saw an outflow of Rs 10,316 crore in January and Rs 21,947 crore in December. Prior to that, debt funds saw a net infusion of Rs 3,668 crore in November 2022, data from the Association of Mutual Funds in India (Amfi) showed. Of the 16 fixed-income or debt fund categories, nine witnessed net outflows during the month under review and the remaining six saw inflow. The heavy withdrawal was seen from liquid funds. Overall, debt funds continued to witness outflows at Rs 13,815 crore during the period under review. "With the central bank's focus on moderating inflation, the monetary policy has been tailored to ensure a disinflation process. Despite expectations around the February rate hike of 25 basis points likely being amongst the

Meanwhile, returns stagnated in 2020 and 2021 with low yields, after the pandemic led to massive rate cuts

Only those investors who remain invested for 10 years will get a guaranteed return and if the actual return falls below the assured amount, pension fund managers shall bridge the gap

LIC AMC, which has been stuck with fixed income schemes for long, has filed for three new schemes in the debt equity and money market spaces and has 26 schemes running now

RBI's floating rate bond is a safe and long-duration product you may enter into at present

Interview with Head - Fixed Income, Canara Robeco Mutual Fund