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TREASURY BILLS why T-bills? A Secure Investment Opportunity Treasury Bills (T-Bills) - a low-risk investment option that's perfect for those seeking stable returns. What are Treasury Bills? "Treasury Bills (T-Bills) They are financial instruments issued by the Federal Government of Nigeria(FGN). They serve as short-term debt securities, a low-risk investment option with short-term maturities, ranging from 90 days to 365 days allowing the government to raise funds while providing a secure investment avenue for individuals, jointapplicants, businesses, and corporates. Treasury Bills offers a high level of security and minimal risk, making them an attractive choice for investors seeking stable returns.", Treasury Bills (T-Bills) have both primary and secondary markets: For primary market: - New T-Bill issues are sold directly to investors through auctions conducted by the Central Bank. - Investors bid on the price they are willing to pay for the T-Bills. - The Central Bank determines the cut-off price and allocates the T-Bills to successful bidders. NOTE: Primary market buyers - ₦50,001,000 minimum investment For secondary market; The secondary market provides liquidity to investors, allowing them to exit their investments before maturity. Prices in the secondary market reflect the current market conditions, interest rates, and credit spreads, which may differ from the original issue price in the primary market. - Existing T-Bills are traded among investors, banks, and other financial institutions. - Prices are determined by supply and demand forces. - Investors can buy or sell T-Bills before maturity, with prices reflecting market conditions and interest rates. In the secondary market, T-Bills are traded over-the-counter (OTC): trading of securities through a broker instead of a major exchange or electronic platforms, such as: - Interbank markets - Money markets - Repurchase agreements (repos) To be continued.............. 🕛

Are You Investing In Debt Funds For Long-term goals ? Many people for their long-term financial goals typically 7-10 years they only focus on equity funds📈 But having a debt fund in your investment strategy can provide stability and enhance your portfolio. They also still offer deferred taxation compared to annual tax on fixed deposits (FDs). Short Duration Debt Funds: They are less sensitive to interest rate changes and provide moderate returns. These are bonds and maturities between 1-3 years📅 Dynamic Bond Funds: This category is ideal for those seeking potentially higher returns with the ability to adjust to changing interest rates.🔄 Banking & PSU Funds: Focus on bonds issued by banks and public sector units (PSUs). They offer a higher degree of safety due to the backing of reputable institutions.🏦 By strategically incorporating debt funds can provide buffer against equity markets volatility, reducing overall portfolio risk🌟  You can achieve a more balanced and effective approach to reaching your long-term financial goals.📈 Follow Chakravarthy V for more insightful posts on #Personalfinance,#wealhmanagement and #Investing

Financial markets anticipate borrowing plan: The financial markets and investors are anticipating the government’s borrowing plan, that will serve as a crucial factor in guiding investors on how to structure their bids. Understanding the government’s borrowing intentions will help investors make informed decisions regarding their portfolio allocations and investment strategies, Simonis Storm Securities noted that. During April, there was noticeable competitive demand for Treasury Bills (TBs), particularly concentrated at the short and long ends of the yield curve. The 91-day and 364-day notes attracted the most significant portion of tendered amounts, indicating investor preference for short-term liquidity and longer-term stability. Despite this concentration, Namibian yields remained competitive in comparison to its South African counterparts, Simonis said. This competitive yield environment offers investors flexibility and the opportunity to allocate investments based on their risk appetite and investment horizon, it said. Simonis said an upward shift in the yield curve over the past three months was observed. This shift is characterized by increases in yields across all maturity segments. “Specifically, yields on shorter-term bonds (less than 5 years) have risen by an average of 33,7 basis points (bps), indicating increased investor demand for shorter-duration assets or potentially higher perceived risks in the long term. In the intermediate segment (5-15 years), yields have surged by 84.4 bps, suggesting a significant increase in investor expectations for inflation or economic growth over the medium term. Similarly, the longer end of the curve (15 years and beyond) has experienced a rise of 53.7 bps, indicating higher yields on longer-duration bonds,” Simonis said. In April, the total annualized holding period return averaged 3,5%, which includes total performance data, including coupons. Simonis said this data reveals that a bullet investment strategy would have detracted from, rather than benefited, an investor. “This reaffirms our previous warnings to exercise caution when investing in the local economy. The existence of alternative theories, often weighing-in heavier, than the simple unbiased expectations theory.” Simonis said data shows that there is a strong appetite for investment and ample liquidity within the Namibian market, which it said indicates favorable conditions for investors, potentially leading to increased participation and trading activity.

💼 Bonds vs. Debentures: What’s the Difference? In the world of finance, bonds and debentures are common forms of debt instruments used by companies and governments to raise capital. But how do they differ? Here’s a quick breakdown: 📊 1. Bonds: • What They Are: A bond is a fixed-income instrument where the issuer borrows money from investors and agrees to pay back the principal along with interest (coupon) at fixed intervals. • Key Features: Bonds are typically secured by collateral, making them lower-risk. They are often used by governments and large corporations. • Example: Government bonds, corporate bonds. • Risk: Lower risk, as they are backed by assets or revenue streams. 📌 2. Debentures: • What They Are: A debenture is also a debt instrument, but it is unsecured—meaning it is not backed by physical assets. Instead, it relies on the creditworthiness and reputation of the issuer. • Key Features: Higher interest rates to compensate for higher risk, often used by companies for raising capital without pledging assets. • Example: Corporate debentures. • Risk: Higher risk than bonds, as repayment depends on the financial stability of the issuer, not secured assets. 📉 Key Differences: • Security: Bonds are generally secured by collateral, while debentures are unsecured. • Risk & Return: Bonds typically offer lower returns due to lower risk, while debentures offer higher returns to compensate for higher risk. • Issuer: Bonds are often issued by governments and large corporations, while debentures are mainly issued by companies. 📌 Choosing Between Bonds and Debentures: • If you prefer lower risk and steady returns, bonds might be your go-to investment. • If you’re willing to take on higher risk for potentially higher returns, debentures may be more attractive. Both instruments are essential for raising capital and provide investors with fixed-income opportunities. The choice depends on your risk appetite and investment goals. 📈💡 #Bonds #Debentures #InvestmentStrategies #FixedIncome #CapitalRaising #FinancialEducation

As a 9-5er looking for low risk, secure investments, understanding T-Bills can open up a new world of financial independence. What are Treasury Bills? Treasury Bills (T-Bills) are short-term debt instruments issued by the government to finance its short-term funding needs. They are a type of fixed-income security, meaning they pay a fixed return over a specified period. T-Bills are typically issued for periods of 91 days, 182 days, and 364 days. How Do Treasury Bills Work? When you buy a Treasury Bill, you are essentially lending money to the government. T-Bills are sold at a discount to their face value. For example, you might buy a T-Bill with a face value of ₦100,000 for ₦95,000 ( at a  5% discount ) At the end of the T-Bill's term (91, 182, or 364 days), the government pays you the full face value of the bill. Using the previous example, you would receive ₦100,000 at maturity. The difference between the purchase price and the face value is your interest earned. In this case, it would be ₦5,000. Benefits of Investing in Treasury Bills - Low Risk: T-Bills are backed by the government, making them one of the safest investment options available. - Predictable Returns: Since the interest is fixed, you know exactly how much you'll earn at maturity. - Liquidity: T-Bills can be easily converted to cash if you need funds before the maturity date Where Can I Buy Treasury Bills? - Commercial Banks: Most major banks offer T-Bill purchasing services. You can visit your bank's branch or their online platforms. - Central Bank of Nigeria (CBN): You can buy T-Bills directly from the CBN through the primary market. The minimum investment amount to buy from a primary market is ₦50,001,000 - Stockbrokers and Investment Firms: Licensed brokers and investment firms can facilitate T-Bill purchases on your behalf.

Our Deputy CEO, Feroze Azeez, discusses the implications of recent tax changes, highlighting that Equity Mutual Funds remain an attractive investment opportunity compared to other asset classes on businessline. Know more: https://lnkd.in/daArpwC8 #mathematicalrevolution #financialplanning #wealthmanagement #mutualfunds #anandrathiwealth #india #indian #investment #investor #investmentideas #databacked #leadershipinsights #riskmanagement https://lnkd.in/dH8rcnef

#mutualfundseries Are you considering investing in long-term duration debt funds? These mutual funds primarily invest in debt securities with #maturities typically exceeding five #years, including #government #securities, #corporate #bonds, and other #fixed-income #instruments. Here's a quick overview of their Investment Strategy: - #Government #Securities: High-quality bonds issued by the government. - #CorporateBonds: Offering higher yields than government securities. - #Municipal Bonds: Providing tax benefits. - #Mortgage-Backed Securities: Backed by mortgage loans. - Other Fixed-Income Instruments: Such as #treasury bills and #certificates of #deposit. #Advantages of these funds include potential for higher returns, diversification benefits, steady income, lower #volatility, and #inflation #protection. However, it's essential to consider #Disadvantages like interest rate risk, credit risk, inflation risk, liquidity risk, and lower returns compared to equities. Before investing, evaluate your investment horizon, risk tolerance, and the current interest rate environment. Make informed decisions when considering long-term duration debt funds. What is your risk appetite? To get knowledge on insight knowledge on mutual fund, AIF and PMS follow me on CA Nitin Mehta FinancialPlanning #InvestmentVsInsurance #WealthCreation #FinancialSecurity #wealth #wealthcreation #mutualfundsahihai #equity #debt #equityfund #debtfund #aum #investoreducation #iep #etf #etfs #portfolio

https://lnkd.in/gYeJz4Rh This was the heading LAST YEAR after budget. But now no indexation for debt funds bought upto 31st March 2023 also. For almost 3 years debt fund returns were very low as rates were artificially kept low in the name of covid relief and after indexation LTCG tax even @20% was nominal amount but now tax will be payable at 12.50% on entire gain (sometimes even negative inflation adjusted return). So there can't be any long term planning for investors. No rewards for remaining invested.

WSJ - Private Debt Is Trouncing Private Equity So Far This Year "Funds that invest in private credit delivered nearly double the returns of their private-equity counterparts in the first quarter of 2024, according to data from MSCI. That differential explains why institutional investors like pensions and endowments are scrambling to pare back exposure to private equity and piling into private debt instead. Higher interest rates are behind the performance gap. They make it harder for private-equity firms to sell the companies they own, while increasing the amount private-credit funds charge on the loans they make. Now there are far fewer buyers because buyout loans are expensive. The fewer sales private-equity funds make, the less money they have to distribute to their investors. Private-equity distribution rates rose briefly late last year as expectations that the Fed would cut rates revived animal spirits. They slumped back near five-year lows to 8.7% in the first quarter of 2024 , according to MSCI data, after persistent inflation dashed those hopes." https://lnkd.in/eCbWH2jS

High yield credit funds offer tempting returns but also come with significant risks. This article looks into why not all fixed income assets are equal, especially with the growing popularity of private credit funds. By blending high yield investments with stable assets like government bonds, investors can potentially mitigate volatility and enhance overall portfolio stability. https://lnkd.in/g_SFwhFJ