Why credit opportunities funds make sense for young

investors
moneycontrol.com/news/business/mutual-funds/why-credit-opportunities-funds-make-sense-for-young-investors-
987056.html

Jun 27, 2016 10:35 AM IST | Source: Moneycontrol.com

Credit opportunities funds offer investors a vehicle to play

rating upgrade theme in a recovering economy.

Adhil Shetty
BankBazaar.com
If you are a seasoned investor, chances are that both debt and equity funds would be part
of your investment portfolio. In a falling interest rate scenario, your returns from debt
instruments will be on the lower side. But if you can invest in credit opportunity funds, you
can still make decent returns. Here is a look at what credit opportunity funds are and why
they may be good for young investors.

What are credit opportunity funds?

At their core, credit opportunity funds are debt mutual funds that invest in commercial
papers and corporate bonds. Credit opportunity funds fundamentally invest in low-rated
bonds that may see an upgrade in rating.

While success and failure of any market-driven fund depends on various parameters like
overall economic health, interest rates, etc, the average return on credit opportunity funds
has been the highest among all mutual fund categories till February 2016 averaging about
at 8.70 per cent annually.

How credit opportunity funds are different from debt funds

Typically, a debt mutual fund scheme invests in bonds that have a high credit rating. Since
credit rating is an indication of the company’s financial health and its ability to repay, most
fund managers choose bonds based on credit ratings.

But credit opportunity funds invest in bonds that do not necessarily have the highest credit
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rating. Typically, a bond with AA credit rating is considered high risk compared to one with
AAA rating. Credit opportunity fund managers may take a call on investing in the AA bond,
preferring it over AAA ones. This may be because of a potential rating upgrade down the
line or assured returns due to strong fundamentals.

When the economy improves, the improvement trickles down to the corporate sector. This
sees improvement in its balance sheet and financials. With improving balance sheets, the
rating agency upgrades the bonds issued by the company. A bond with high rating typically
offers lower interest rate than a bond that comes with low rating. Hence a rating upgrade
leads to a fall in yield and a rise in bond price. In a recovering economy there are more
chances of rating upgrades and one can play this theme with credit opportunities fund.

Taxation aspects of credit opportunity funds

If you sell your investments in these funds within a year of investment, your gains are liable
for income tax as per your tax slab, with capital gains being added to your individual income
for the financial year.

If you redeem your fund after holding it for more than one year, you will be liable to pay tax
at the rate of 20% after indexation on the capital gains.

Credit opportunity funds for young investors

If you are a young investor with an appetite for risk, you could consider diversifying your
portfolio by investing in credit opportunity funds. Invest with a minimum two to three year
time frame. This long term investment of more than two years allows the credit opportunity
fund to offer better returns than most other investments including even bank fixed deposits.
Also, being a debt investment instrument, your risks are far lower than investment in equity
based funds. If you remain invested for more than three years, your post tax returns are
much better than most fixed deposits.

Credit opportunity funds in India

When you design your financial portfolio, you have to carefully choose products that suit
your needs. Opting for credit opportunity funds can be a good idea provided you have the
resources to ride over intermittent volatility in bond markets and liquidity requirements you
may have in the short term.

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Apr 09, 2018 11:39 AM IST | Source: Moneycontrol.com

Stock market prediction for April 9-13: Satish Gupta

According to Satish Gupta of astrostocktips, infra stocks like

NCC, IRB Infra, NBCC, Dilip Buildcon and HCC will get
astrological support.
Moneycontrol News @moneycontrolcom

By Satish Gupta of astrostocktips.in

Weekly planetary position: During the week, Moon will be transiting in Capricorn &
Aquarius. Lord Saturn & Mars in Sagittarius. Lord Jupiter in Libra. Lord Ketu in Capricorn.
Sun & Mercury in Pisces. Venus in Aries. Lord Rahu in Cancer. Pluto in Sagittarius.
Neptune in Aquarius & Uranus in Aries.

Planet Mercury, which controls our mind (Buddhi) is transiting in Pisces and is in retrograde
position from March 23, 2018 to April 15, 2018. Be cautious, as one is likely to take wrong
decisions, resulting in financial losses, depending on its position in individual horoscope.

Technical analysts/researchers can be worst affected (since planet Mercury is significator

of this profession). Persons with Pisces, Gemini, Virgo, ascendant/rashi need to be extra
vigilant.

Satish Gupta
Satish Gupta

4/12
CEO|Astrostocktips

Following sectors will be receiving astrological support:

Food processing: Jubilant Food, Britannia, Nestle, Vadilal Industries, Varun Beverages,
Prabhat Dairy, etc. This sector was predicted last week too & during the week – Jubilant
Food, LT Food, Tasty Bite, Umang Diary and Prabhat Diary moved up by 4-12 percent.

Infra: NCC, IRB Infra, NBCC, Dilip Buildcon, HCC, etc.

Housing finance/NBFC: DHFL, Repco Home Finance, HDFC, Indiabulls Housing, Bajaj
Finance, Cholamandalam Investment, Bajaj Finserv, L&T Finance, M&M Financial, Shriram
Transport, etc. This sector was predicted last week also & during the week – in housing
finance sector- Can Fin Home, Repco Home Finance and Indiabulls Housing went up by 6-
9 percent. In NBFC, M&M Finamcial, Bajaj Finance, Shriram Transport and Capital First
moved up by 6-11 percent.

Liquor: United Spirits, UBL, Globus Spirits, Empee Distillery, Som Distillery, Radico
Khaitan, etc. This sector was predicted last week too & during the week – Pioneer Distillery,
Pincon Spirit & IFB Agro shot up by 13-37 [ercent.

Tyre sector will also be getting astrological support.

Predicting bullish sectors of next Samvat 2075

Every year with commencement of new Samvat (Hindu New Year), astrologically, based on
planetary position, certain new sectors start getting strong astrological support & start
outperforming, while some others sectors which were performing earlier start
underperforming.
Some sectors/stocks remain laggards. Based on our experience of over 20 years as
Financial Astrologer, stocks of astrological supported sectors outperform resulting in
exorbitant gains irrespective of market behaviour, either bull market or bear market.

Every year we release sectors of new Samvat in the month of March/April when new
Samvat starts. This time new Samvat started from Mrach 18, 2018.

We firmly believe that these special astrological positions present very unique opportunities
to investors and traders both. This opportunity, if utilized properly, can safeguard your
existing portfolio and simultaneously optimize your future investments and trading also. So
contact us at early and subscribe or renew the Sectors of Samvat 2075. After all successful
investing and trading is all about good timing only.

Needless to mention our innumerable past predictions, where most stocks from the Sectors
of Samvat gave exorbitant returns & certain stocks appreciated by over 500 percent.

After gap of many years, sugar sector started getting astrological support in the year 2015
and many stocks - Dwarikesh Sugar, Mawana Sugar, Upper Ganges, Uttam Sugar, etc
shot up by 500-900 percent. In the year 2016 dyes/chemicals sector got astrological
support & stocks like Bhageria Industries, Thirumalai Chemicals, Sudarshan Chemicals, etc
were up by 490-650 percent.
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During last Samvat 2074 (2017-2018), among other sectors - food processing sector was
predicted, which received strong astrological support. Many stocks from this sector
appreciated.

Sectors which get very strong astrological support are not normally affected by downfall in
the market.
Sectors which get strong astrological support also start getting favourable news along with
all kind of positive support by regulatory authorities in that industry, resulting in strong
growth & super positive results. Most of problems also start resolving.

Disclaimer: The views and investment tips expressed by investment experts on

moneycontrol.com are their own, and not that of the website or its management.
Moneycontrol.com advises users to check with certified experts before taking any
investment decisions.

tags #Astrology

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Apr 09, 2018 11:41 AM IST | Source: Moneycontrol.com

Zee Entertainment down 1%; Citi maintains neutral, cut

target to Rs 605

In the fourth quarter OTT losses will weigh on earnings, while

the base business of the company is steady.
Moneycontrol News @moneycontrolcom

7/12
NSElive

09 Apr, 2018 11:47

578.00
-6.50 (-1.11%)

Volume 388997

Todays L/H 577.35589.90

More
Shares of Zee Entertainment Enterprises was down nearly 1 percent intraday Monday as
broking house Citi has maintained neutral rating and cut target price to Rs 605 from Rs 650
per share.

Broking house expect higher investments in the company due to competitive intensity and
also as advertising trends remain healthy.

TRAI tariff regulations remains the key variable for subscription revenue. However, in the
fourth quarter OTT losses will weigh on earnings, while the base business of the company
is steady.

At 11:20 hrs Zee Entertainment Enterprises was quoting at Rs 581.75, down Rs 2.55, or
0.44 percent on the BSE.

The share touched its 52-week high Rs 619.35 and 52-week low Rs 477.25 on 17 January,
2018 and 18 October, 2017, respectively.

Currently, it is trading 6.39 percent below its 52-week high and 21.49 percent above its 52-
week low.

Posted by Rakesh Patil

tags #Buzzing Stocks

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Apr 09, 2018 11:18 AM IST | Source: Moneycontrol.com

Century Plyboards hits 52-week high on disinvestment in

step down subsidiary

With this P T Century Ply Indonesia has also ceased to be a

step-down subsidiary of Century Plyboards (India) with effect
from April 5, 2018.
Moneycontrol News @moneycontrolcom

9/12
NSElive

09 Apr, 2018 11:47

354.00
-0.45 (-0.13%)

Volume 96133

Todays L/H 350.55363.50

More
Shares of Century Plyboards touched 52-week high of Rs 364.10, gaining 3 percent
intraday Monday as company written-off its entire investments in its subsidiary P T Century
Ply Indonesia.

The company's subsidiary Century Ply Singapore Pte has written-off its entire investments
its subsidiary P T Century Ply Indonesia.

With this P T Century Ply Indonesia has also ceased to be a step-down subsidiary of
Century Plyboards (India) with effect from April 5, 2018.

P T Century Ply Indonesia was incorporated with the object of exploring the possibilities of
trading in timber, manufacturing and trading in plywood, etc. in Indonesia. However, after a
detailed analysis of the current industrial and marketing scenario in Indonesia, the
proposition has not worked out to be presently viable, company said in press release.

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P T Century Ply Indonesia has not made any business turnover since its incorporation and
its net-worth constituted only a negligible part of the consolidated net worth of the
company. Further, writing-off of the aforesaid investments by Century Ply Singapore Pte
would have no material implication on its functioning or that of company, it added.

At 11:09 hrs Century Plyboards was quoting at Rs 355.90, up Rs 2.25, or 0.64 percent on
the BSE.

Company share gained 38 percent in last 6 months.

Posted by Rakesh Patil

tags #Buzzing Stocks

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