Life is full of uncertainties and unexpected events; it was about being prepared for the unexpected and having a safety net to fall back on that matters the most.

Financial stability forms the bedrock of peace of mind. Why you have a stable financial foundation, you can face life challenges with confidence and less stress. Financial stability means having enough resources to cover your basic needs, handle emergencies and plan for the future.

Consider a life without worry about bills, debts or unforeseen expenses. This state allows you to focus on personal growth, relationships and pursuits that bring you joy and fulfilment.

Financial Education

Knowledge is power, especially when it comes to managing your finances, educate yourself on personal finance. Topics such as budgeting, saving, investing and debt management. Understanding these concepts empowers you to make informed decisions and take control of your financial future.

Many resources are available to help you improve your financial literacy including books, online courses, podcasts and workshops that take advantage of these tools to enhance your understanding and confidence in managing your finances.

Seeking Professional Advice

Sometimes seeking professional advice can provide clarity and direction for your financial journey. Financial advisors can offer personalized guidance based on your unique situation and goals. They can help you to create a comprehensive financial plan, recommend investment strategies and provide support during difficult times.

At Akerkar Wealth we do personalised financial planning and advice for your goals. In the last 20 years of our journey, we are obsessed with the financial transformation of our clients.

Creating success stories is our Goal.

A blog from Santosh G Akerkar. For Educational and Awareness purposes.
Best Regards,
Santosh Akerkar

RBI maintains the status quo at 6.5% keeping the Repo rate unchanged and focused on the withdrawal of accommodation stance.

Reasons for RBI to maintain Repo Rate.

1. RBI concerned about inflation.
2. Normalizing a high rate environment.
3. RBI trying ensure inflation particularly food inflation should get in RBI target area.

Our Take

EM central Banks policies were mostly run by Fed. Unless typically wrong with very high Inflation and current account deficit.

Fed likely to cut rate in sept policy meet. So, we think RBI is likely to cut the rate in Dec,2024.

In the past after first rate cut by fed equity markets go through correction. Rates cut are good for bond market. Debt market will see rally in next 2-3 years and it can give 2-3 % more over real rates.

Equity markets will become volatile with negative bias. Stay away from mid and small cap. Stay away from thematic funds (Defence) as well. There can be price or time correction. Good time to get in Large cap funds and consumption (premium) focused funds.

In short RBI in no hurry to be the first to cut.

A blog from Santosh G Akerkar. For Educational and Awareness purposes.
Best Regards,
Santosh Akerkar

ICICI Prudential Short-Term Fund

• Low risk fund for short term goals
• Why this fund works

Invest in treasury bills, certificate of deposits, commercial papers and corporate securities.

Current yield to maturity of portfolio is healthy.

Over 82% of the securities are sovereign or carry the highest AAA or AI+ ratings.

As its bond fund it has zero exposure to Equity or Stocks.

As there’s consensus that interest rates have peaked and that with relatively be high inflation, there may be possibility of a reduction in rates later in the year.

However, we believe that this is going to be shallow rate cut cycle due to variety of reasons. At the same time RBI likely to keep liquidity tight in the system. There is no sign of going back on stance of withdrawal of accommodation from RBI.

Thus short term interest rates may still hold up for the forseeable future. In this regard ultra short-term funds can be considered by investors for parking their emergency funds or for short term goals.

The current Macaulay duration is healthy at 0.46 years (less than six months) as is the yield to maturity at 7.72 %. It is worth nothing that CPS and CDS of three months tenor are still available at yields north of 7 %.

Investors can consider the fund for short term goals for stable returns.

A blog from Santosh G Akerkar. For Educational and Awareness purposes.
Best Regards,
Santosh Akerkar