Abhishek Kumar on Saving and deposits in the Media

Abhishek Kumar said bond SIPs suit investors who can act as their own fund managers, tracking interest-rate cycles, issuer quality and exits, and advised matching the SIP's duration to the goal and knowing the exit cost.

Abhishek Kumar explained that FCNR deposits shield holders from rupee movements because principal and interest are paid in the same foreign currency, and that the interest is tax-exempt for NRIs and RNORs.

Abhishek Kumar said high-rated corporate bonds offer an extra spread over government bonds, but pointed out that investors should prefer AAA-rated issuers to limit credit risk in uncertain times.

Abhishek Kumar said current yield levels offer a chance to lock in rates while the rate cycle is paused, and suggested government securities, highly rated corporate bonds, and laddering or phased investing to manage volatility.

Abhishek Kumar pointed out that corporate deposits carry no statutory insurance, suggested checking an issuer's interest coverage and debt levels, said retirees may avoid them, and suggested limiting them to a small part of fixed income.

Abhishek Kumar said that in a stable rate environment sweep accounts help depositors earn reasonable interest without active management, and can suit emergency funds for those uneasy with liquid funds.

Abhishek Kumar said investors are moving from deposits and debt funds to direct sovereign debt for its lower costs and safety, and cautioned that trading bonds rather than holding them exposes investors to interest rate risk.

Abhishek Kumar said higher crude oil prices and climbing US Treasury yields were likely to keep Indian bond yields high through the month.

Abhishek Kumar said the three- to seven-year part of the yield curve offers a good balance of yield and rate protection, and suggested investing in it through debt mutual funds.

Abhishek Kumar said bonds maturing in five to ten years can appeal to long-term investors wanting to secure higher real rates while policy is on hold, while short duration funds suit those worried about near-term volatility.

Abhishek Kumar said much of the inflation risk appeared to be priced in and that buying by domestic institutions could steady yields. He also discussed how long-term and cautious investors might approach bonds at current levels.

Abhishek Kumar suggested retail investors use debt funds holding high-quality bonds, follow a laddered approach, keep enough liquidity, and favour highly rated bonds with one- to five-year maturities.

Abhishek Kumar said stable oil prices, a Fed pause, RBI bond purchases, better liquidity or fiscal discipline could cap yields. He suggested debt funds holding high-quality bonds, a laddered approach and favouring one-to-five-year maturities.

Abhishek Kumar said market volatility is pushing cautious investors towards fixed deposits. He described FDs as a stabilising base that protects capital rather than a growth engine, and suggested spreading deposits across banks and using a laddering approach.

Abhishek Kumar said the market-making framework could help address illiquidity in corporate debt. On municipal bonds, he said lasting growth needs a stronger secondary market and investor trust in city finances, beyond fiscal incentives.

Abhishek Kumar said tax breaks could revive investor interest, citing strong demand for an earlier tax-free green issue, but cautioned that the outcome would depend on product design and the small yield difference.

Abhishek Kumar said inclusion could come at the next review if operational issues are resolved, and suggested retail investors who will not hold government securities to maturity consider gilt funds.

Abhishek Kumar said the foreign inflows signalled a modest shift in sentiment but should be seen as cautious buying, not a lasting turnaround, and expected volatility driven by global rates and the dollar until a possible index inclusion decision.

Abhishek Kumar said easing inflation, continued RBI liquidity support and a possible further rate cut could pull yields lower, and that foreign debt flows could pick up gradually, with recent outflows not pointing to structural weakness.

Abhishek Kumar explained that the unwinding of yen-funded carry trades could add volatility and lead foreign portfolio investors to pull money out of India.

Abhishek Kumar said the gap between 10-year corporate bond and government bond yields was near historic lows and expected it to widen on rising global yields, foreign outflows and weaker investor confidence.

Abhishek Kumar said fixed deposits can be part of a short-term debt portfolio but do not suit a core holding, given their lower post-tax yields than debt funds.

Abhishek Kumar said liquidity will remain a key driver of bond yields, especially at the short end. He also explained that the effect of global index inclusion would depend on how fast funds adjust and on domestic and currency conditions.

Abhishek Kumar suggested government securities instead, saying the corporate bond market runs into problems from time to time and its higher yields come with greater credit and liquidity risk.

Abhishek Kumar pointed out that no-cost EMI deals are often limited to certain cards or banks and may carry prepayment penalties, which can raise the total cost of the purchase.

Abhishek Kumar pointed out that retail investors can use SIPs for T-bills but should expect to hold them until maturity, since, unlike bank deposits, they are hard to sell early in the secondary market.

Abhishek Kumar said most people selling property focus on saving tax rather than on investments that fit their goals. He suggested looking beyond the immediate tax saving at long-term growth and portfolio balance.

Abhishek Kumar cautioned retail investors against focusing only on coupon rates, explained that higher coupons usually reflect higher default risk, and pointed out that online bond platforms earn fees from issuers while investors carry the risk.

Abhishek Kumar cautioned that offers of high return with low risk are often misleading. He said direct bond investing suits those who can analyse credit risk, and suggested limiting corporate bonds to 10–20% of the fixed income portfolio.

Abhishek Kumar said savings accounts should be used for bills and monthly expenses, with one to two months of expenses kept there. He suggested moving the rest to FDs or debt mutual funds based on risk appetite, noting that debt fund gains are taxed only on redemption.

Abhishek Kumar explained that no special declaration is needed but statements should be kept as proof, and that the exempt interest should be shown in Schedule EI of the tax return.

Abhishek Kumar explained how a sweep-in facility moves surplus savings into a linked fixed deposit and back when the balance dips, and described liquid funds as a place for emergency money or idle cash.

Abhishek Kumar cautioned buyers to look at the stability of their income given the risk of a slowdown and job losses, because a home purchase ties you in for many years.

Abhishek Kumar said the Finance Minister's post-budget remarks pointed to no fresh SGB issues, linking this to higher government borrowing costs as gold prices rose. He said investors would now need other financial routes to hold gold in their portfolios.

Abhishek Kumar, founder of SahajMoney, cautioned that inflation over a long holding period can erode the real value of fixed deposits, and said those who can stay invested for long should spread their money across FDs and growth assets such as equity.

Abhishek Kumar said that if the RBI cuts the repo rate, banks would soon follow by lowering their rates.

Abhishek Kumar said the change may make people wary of relying on small savings schemes alone for retirement. He suggested that depositors in lower tax slabs withdraw in tranches across financial years, while those in the 30% slab may withdraw at once.

Abhishek Kumar cautioned that a fund manager's rate bets can go wrong and hurt these funds, and suggested that investors able to bear interest-rate risk for three to five years could put 10–15% of their debt portfolio in them.

Abhishek Kumar cautioned that a sudden rise in interest rates can hurt returns, so G-secs suit long-term goals. He also shared his view that rates were holding steady and might start to ease.

Abhishek Kumar, founder of SahajMoney, said his firm had asked clients to update Aadhaar and PAN in small savings accounts after the 2023 rule change, and urged others to do so to avoid trouble receiving maturity amounts.

Abhishek Kumar said the rate-hike cycle appears to have peaked unless inflation rises again, so people parking debt money for two to three years could consider fixing deposits at today's rates.

Abhishek Kumar, a SEBI-registered investment adviser, said he expected the repo rate to come down as inflation eases, leaving a limited window to book tax-saving FDs, depending on one's investment horizon.

Abhishek Kumar cautioned against being swayed by higher rates alone, pointed out that corporate deposits lack the ₹5 lakh deposit insurance cover that bank FDs have, and suggested checking the issuer's credit rating.

Abhishek Kumar, a SEBI-registered investment adviser, said the Centre's fiscal discipline could let the MPC consider a repo rate cut sooner than expected, and that risk-averse investors could lock money into long-term bank deposits.

Abhishek Kumar, a SEBI-registered investment adviser, said the government's fiscal discipline could make it easier for the RBI to cut the repo rate sooner than expected, and suggested risk-averse investors could lock money into longer-term bank deposits.

Abhishek Kumar said a PPF rate revision for the January–March 2024 quarter looked very unlikely given recent bond yields, though the coming election could lead the government to surprise small savers with a small increase.

Abhishek Kumar said interest rates had not yet turned down, with inflation rising, so the RBI may hold the repo rate for a while, which gives savers a window to lock money in deposits at higher rates.

Abhishek Kumar, founder of SahajMoney, noted that the RBI change benefits individual depositors, who can now hold fixed deposits of up to ₹1 crore, including NRE and NRO deposits, without losing the premature withdrawal option.

Abhishek Kumar, founder of SahajMoney, said the change would help individual investors place up to ₹1 crore in bank FDs that can be withdrawn early, and noted that it also applies to NRE and NRO deposits.

Abhishek Kumar, founder of SahajMoney, said the change would let individuals keep up to ₹1 crore in bank FDs with a premature withdrawal option, and that it also applies to NRE and NRO deposits.

Abhishek Kumar said investors in dynamic bond funds need not time their entry and exit, cautioned that wrong rate calls can badly hurt performance, and suggested avoiding funds that take on a lot of credit risk.

Abhishek Kumar suggested raising EPF contributions to build a long-term debt portfolio meant for retirement, and pointed to gilt funds for medium- to long-term debt holdings and to overnight and liquid funds for short-term needs.

Abhishek Kumar cautioned that income from these bonds depends on where the rate moves, so investors should be comfortable with lower payouts if rates fall. He also noted that, unlike a debt mutual fund, they cannot be bought and sold.

Abhishek Kumar, founder of SahajMoney, said small investors should stay away from corporate FDs because they stand to lose a great deal if the issuer defaults.

Abhishek Kumar, founder of SahajMoney, said small investors should stay away from corporate FDs because they stand to lose a great deal if the issuer defaults.

Abhishek Kumar, founder of SahajMoney, said that with a laddered set of fixed deposits, investors can also benefit if banks raise FD rates soon.

Abhishek Kumar, founder of SahajMoney, noted that laddering fixed deposits across tenures lets a depositor benefit if banks raise FD rates in the near term.

Abhishek Kumar, founder of SahajMoney, said a few banks had cut FD rates early in anticipation of a repo rate cut, but the recent rise in CPI inflation might keep the MPC holding the repo rate for a few more quarters.

Abhishek Kumar, founder of SahajMoney, said a few banks had cut FD rates early in anticipation of a repo rate cut, but that the recent rise in CPI inflation could lead the MPC to hold the repo rate for a few more quarters.

Abhishek Kumar, founder of SahajMoney, pointed out that senior citizens get no extra interest on five-year post office time deposits, unlike bank FDs, where most banks add 0.5 percentage point for seniors.

Abhishek Kumar, founder of SahajMoney, pointed out that senior citizens get no extra interest on the five-year post office time deposit, whereas most banks add about 0.5 percentage point on senior citizen FDs.

Abhishek Kumar, founder of SahajMoney, said the bond's non-cumulative interest makes it unsuitable for people still building wealth, but retirees who have used up SCSS, POMIS and PMVVY could consider it for half-yearly payouts.

Abhishek Kumar, founder of SahajMoney, said fixed deposit investors should consider booking deposits before banks begin cutting rates in response to RBI action.

Abhishek Kumar, founder of SahajMoney, said fixed deposit investors should decide whether to book their deposits before banks begin cutting rates in response to RBI action.

Abhishek Kumar explained that banks were paying more on short-term deposits because depositors expected inflation to stay high in the near term, while over longer periods banks expected the repo rate to ease.

Abhishek Kumar said the scheme could suit those investing up to ₹2 lakh for two years, and cautioned that premature withdrawal carries a penalty, so investors should plan before putting money in.

Abhishek Kumar cautioned that uncertainty around cryptocurrency will continue until it comes under regulatory oversight, and pointed out that thin trading exposes investors to pump-and-dump schemes and, in a crackdown, total loss.

Abhishek Kumar pointed out that CPI inflation remained above the RBI's six per cent upper limit, so borrowers should be ready for more hikes. He said further increases would push lenders to raise home loan rates, squeezing household savings.

Abhishek Kumar suggested that money for short-term goals or liabilities be placed fully in short-term debt, for example liquid funds, overnight funds or bank deposits.