top of page
Learn to Invest !!.png
  • Abhinesh Kumar

This time, borrowing for election spending is going to be lower than before !

As reported by Economic times on 28th March 2024, Centre will borrow ₹7.5 lakh crore in H1FY25, eyes ₹12,000 crore via green bonds. The sum is lower than the usual borrowing of about 57-60% of the total for a fiscal year in its first half.

A lower borrowing target for the first half would have a benign impact on bond yields. So this is a good news for all Debt funds and Asset Allocation funds, which has bonds in its portfolio.

In another good news from Debt Market, JPMorgan has announced that it will include Indian government bonds in its widely tracked emerging market debt index, starting June 2024.

In the interim Budget last month, the government had reduced the FY25 gross market borrowing target to Rs 14.13 lakh crore from Rs 15.43 lakh crore in FY24, as it went on a fiscal consolidation drive.

Market is showing its happiness in the matter , by way of broad rally in last 5 days :

“I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” – By Warren Buffett

Disclaimer : Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.


bottom of page