How to make regular income from investments?
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- Опубліковано 25 лис 2021
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If your parents ask where should they invest, what should you tell them?
Here's an option that you can explore.
Watch the video till the end to understand it holistically :)
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These are Debt Instrument issued outside India to raise Money. And this instruction would be bought only in INR and I believe that might help in INR appreciation.
Masala bonds are debt instrument which helps to fund money in local currency. It can be raise by foreign investors.
It's great that you are talking about bonds, but since you showed the The South Indian Bank bond it would have been better to mention some of them are perpetual. People could jump in without exactly knowing what parameters to look for.
Masala bonds..Interesting✌
is there any yearly / monthly charges if i signup to goldenpi
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@Anneliese-Carina That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@Anneliese-Carina I will give this a look, thanks a bunch for sharing.
@@sanikura837 be careful with the money you have. Don't invest on the suggestions of comment section.
Democracy is Democrazy India needs a king or queen to prosper imported system favors it's creator😂
This administration has no idea how people are suffering, things are getting so much harder we can't take it no more. A lot of people are financially struggling to put food on the table and a roof over their head, I appreciate your advice Walter James Henry. Imagine I invested $2,000 and got $10,600.
He's mostly on Telegrams, using the user name
@Gainwithwalter7
Best thing that happened to me last year that I can attest to is the progress I have made so far on trade. Venturing into crypto was my best decision ever I know more is yet to come 2024
The process of trading can be complicated when you have limited knowledge.
However, with the right strategy and setups, you can be successful. That's the whole point of investing.
Interesting!! I'm so excited, seeing mr Walter, being mentioned here because his strategies have also normalized winning trades for me. and it's a huge milestone for me looking back to how it all started.
I’ve been diligently working, saving and contributing towards financial freedom and early retirement, but the economy so far since the pandemic has eaten away most of my portfolio, what I want to know is this: Do I keep contributing to my portfolio in these unstable markets or do I look into alternative sectors.
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
I’m a contractor, and my job doesn’t permit me the time to properly analyze my holdings/evaluate stocks myself, so I’ve had a fiduciary actively restructuring my portfolio for the past 7 years now to match the present market condition and that’s how I’ve been able to stay afloat, knowing when to buy and sell…maybe you should do the same.
How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings
“Sonya lee Mitchell’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just checked her out and I have sent her an email. I hope she gets back to me soon
Great video, One thing I know for a fact Financial Success don't happen overnight, While people like Warren Buffet, Elon Musk, Jeff Bezos all talk about the importance of investing, I've been keen to invest lately, my challenge is knowing when to sell/hold and how to grow profit consistently even in an unsteady market.
It's alright, the average investor struggles with when to sell or hold, as for making consistent profit even during a market crash, your best bet is having a professional guide you.
@stanleyedwin6947 Hey Mate, Really glad to have stumbled on this conversation, which advisor do you use and are you making more than average returns?
@stanleyedwin6947 I just looked her name up out of curiosity and was able to reach her web page on google and email her. I'm hoping she will respond to me shortly. Thank you so much for the tip.
I learnt to manage my money through investments and it really works for me. They say money can't buy happiness but poverty can't buy anything.
There are so many ways to manage money and prepare for a relaxing future, we just always have to keep doing our best because whatever we plant now, we will harvest later, good or bad.
For beginners it is advisable you invest through an expert trader who would serve as a mentor and a guardian to ensure you make profits and increase your accuracy when you make trades, in that way you get to make money with low risk of losing your hard earned money...
Interesting, I'm guessing you are an expert, can I trade through you? or do you have an expert you could refer me to?
Sure, You should look up on the web for TERESA JENSEN WHITE..
My advisor is "TERESA JENSEN WHITE". In terms of portfolio diversity, she's a genius. You can glance her name up on the internet and verify her yourself. she has years of financial market experience.
Successful people don't become that way overnight. What most people see at a glance- wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life..
@Johann Bauer You're right
But I don't know why people remain poor due to ignorance
@@jonaskuhn8237 I've never heard or seen any of he's clients complain of lost....I think he is just too perfect.
@@edithgicquel7104 A friend that I referred to him just received €33,050 profit after 5 days of investing.... I became jealous.. Lol
My first experience with him gave me the assurance that has made me to invest without fear of loosing.
Hi Akshat,
Masala Bonds are bonds issued outside India and denominated in Indian Rupees. The term was used by International Finance Corporation(IFC) to denote Indian Cuisine and Culture. In Masala Bond the investors take the Currency risk.
Masala bonds are the bonds issued outside India, by an Indian entity. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination.
The major objectives of Masala Bonds are to fund infrastructure projects, ignite internal growth (via borrowings) and internationalize the Indian rupee and helps in building up foreign investors' confidence in the Indian economy.
And Akshat, your explanations are super easy to understand. Feels like getting advice from a super professional. Would be great to see your professional attire as well in coming videos ;) And yes foremost, the glasses. Thanks for sharing the knowledge
Is this really a good time to buy stocks? I know everyone says the mrkt is ripe enough for buying but will stocks tank further this year? How long until a full stock recovery? How are other people in this mrkt raking in over $250k gains within months, I'm really just confused at this point.
Why risk is high in real estate?
Thanks Akshat for explaining about Binds so deeply nicely and minutely so that a layman can also understand 😊👍
Thank you Akshat for the Useful and practical Content. Masala Bonds utility in my view are
1. Issuer perspective: Forex risk is negligent (earnings and borrowings in same currency); relatively lower cost of borrowing
2. Investor perspective: relatively higher yield, portfolio/currency diversification, if issued by Govt - sovereign backing, low default risk (relatively better credit rating for India than other economies)
Masala bonds - are rupee-denominated bonds as a source of debt financing for the public and private sector in India to raise money from foreign investors.
Utility- Reduces currency - related risks and documentation for the issuers.
And as a result is able to give higher interest rates(approx. 5% more than SBI's base interest rate).
I used to see Crypto as a side thing but it has proven to be a major source of passive income since I venture into it.
I'm thinking of investing in the Crypto market but taking my time to figure out how the whole thing works.
@Eric Scott you're right!
I've been making weekly passive income from crypto for over 5 months tho' I prefer trading with the help of a professional broker because it saves me time and reduces the risk of losing funds in trading as we all know how volatile the market is
crypto is very volatile which is why most successful investors trade with professional brokers.
Reading about people grabbing multi-figures monthly as income in investment even in this crazy days in the market,any pointers on how to make substantial progress in earnings? would be appreciated!
Masala bonds generate a higher interest rate, bring more foreign sum in the country, and also contribute to foreign investment of a country. It can be raised to the ₹ equivalent to USD 50 million in a financial year.
Hi Akshat,
1. Masala bonds are used in refinancing rupee loans and non-convertible debentures.
2. In real estate activities for the development of integrated townships and affordable housing projects.
3. These bonds provide the working capital to corporate and perform the activities
I am 18 y/o. So, I would try to answer this such a way that even a 15 y/o can understand. As the word suggests, "Masala" which is used in food for taste. Similarly, masala bonds gives foreign investors a way to have a taste in investing in India. These are Rupee denominated bonds which means returns or interest paid is calculated in terms of rupees which saves borrower even if rupee gets depreciated. These bonds are low risk and generally used for Affordable housing, working capital for companies, refinancing loans, etc. Also capital gains from these bonds are exempted from taxes.
Masala Bonds are rupee-denominated bonds. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination.
Utility or benefits:
▪︎ cost of funds is cheaper and is issued below 7% interest rate.
▪︎Do not have to worry about the depreciation of rupee.
▪︎Easy medium to internationalise Indian rupee.
There are some more utility or benefits to masala bond . We need to learn and invest. Thank you sir 😊
Hi Akshat,
Masala bonds are essentially a debt instrument but relatively more secure. It does have the disadvantages of currency fluctuations associated with it but there are also some tax benefits associated with currency appreciation, if that happens.
Another option is put it in Liquid fund -> Do SIP in MF regularly -> SWP from MF this way we can make good money beyond 8% as well.
Hi Akshat, even though every body has already written the utility, I think by incentivising the efforts for finding the answer, you made some thousands of people read about the Masala Bonds and that is productive in my viewpoint.
I also read about the same, so just noting down one two super important points in my viewpoints:-
- Practically speaking, the currency depreciation is borne by investors. So the investments will be from such people who believe in growth story of India. Obviously it gives benefits to the borrower.
- Emotionally thinking, it creates awareness of India spices and cuisines in foriegn world. The exports of Indian Spices have been growing at good rate. There are various factors responsible but just making a random, quite illogical analogy.
Masala bonds are the bonds issued by the Indian entities in the international market for raising funds. It is raised in the rupee currency rather than issuing it in the local currency of the country where it is issued.
The name of the bond i.e. the "masala bond" was given by the International Finance Corporation because India is known for its spices and cuisine.
Hey Akshat, I think the key utilities of Masala Bonds include:
1. Access to Global Capital
2. Currency Risk Mitigation: Since the issuer does not bear the exchange rate risk
3. Interest Rate Advantage
4. International Presence and Reputation
5. Diversification of Investor Base
6. Boosting Foreign Investment
7. The Indian government encourage the issuance of Masala Bonds
8. Promotion of debt in Indian Rupees
So, overall, Masala Bonds offer a strategic financial tool for Indian entities to leverage international capital markets while managing currency risks effectively.
Made investing in bonds a lot more easier. Banking websites are never this user friendly when it comes to bond investing. Thank you sir.
Utility of Masala Bonds
Due to rupee depreciation risk (exchange rate risk) Bond Issuer has to pay more amount while redemption, So Masala bonds transfer the currency risk from issuer to borrower, Which ensures the benefit of Indian Issuer
Hi Akshat,
Masala bond is a term used to refer to a financial instrument through which Indian entities can
raise money from overseas markets in the rupee, not foreign currency. The rupee denominated bond is an attempt to shield issuers from currency risk and instead
transfer the risk to investors buying these bonds. Currency risk is borne by the investor. The Masala bond market globally also supports Indian company and infrastructure financing.
Kya copy paste kiya hai
Having a dynamic strategy cannot be overemphasized when trading forex. The best advice I could give to any forex trader is don’t trade if you don’t have a working strategy.
I’ve only been trading a couple weeks and I’m still yet to make my first $100, I’m still trying improve on my trading techniques and strategies and I would really like to make profits from the forex market too
I’ve made a loss of over $2500 trading in my own where can I find an expert to help me recover my losses and also help me earn consistently from the forex market.
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How do I reach her ,you got any possible means of getting more info on her services?
Lookup with her name on the web, you will find everything you need to know about her service.
Your smile explains everything when you were talking about the third option that is investing in stocks...
Masala Bonds are rupee-denominated bonds. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination.
In 2019, Kerala became the first Indian state to issue Masala Bonds worth Rs. 2,150 crore on the London Stock Exchange. State-owned Kerala Infrastructure Investment Fund Board (KIIFB) had issued the bonds to raise funds in the overseas market.
Answer-
1.)Masala bonds was made to add masala(spice up) indian economy by boosting foreign investment in indian currency and to boost infrastructure development.
2.)It also attracts foreign investors as it offers higher rate of interest compared to developed countries.
3.)Generally interest rates of other currencies are lower so helps in issue of higher funds via indian rupee and make it more global.
4.)It will help in the development of domestic bond markets due to competition from overseas investors.
5.)The best part is that even if the indian rupee falls all risk is ith the investor and not ith the issuer which is an indian entity.
TOOK me time to understand and pen down points about utilities of masala bond.
Thank you for making me aware about this topic.
Thanks for your feedback , I will also advise you get a good life by starting to invest , especially on stock market and crypto currency,I will refer you to my trade analyst and financial guru to assist you and make good profits ...
Hope you get the book, your comment is comprehensive and to the point.
@@amvkarthik thanku bro..I tried my best to concise in my own language..but unfortunately didn't get the book 😅still fine got to learn many things
Yes sir
It helps in building up foreign investors confidence in the Indian economy
First time I came know clearly about bonds. Thank you
Hey Akshat,
Simply putting, Masala bonds are indian bonds issued abroad in Rupee denominations. The currency fluctuations are at the hands of the bond buyers and the issuer doesn't have to worry about it. This helps to bring in foreign investments into large infrastructural projects in India at lower coupons. Masala bonds cannot be issued for real estate/housing projects.
Thanks for watching☝️☝️
☑️
Don't forget to hit the button for consultation and investment advice..on how to invest....?✅.
I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or whenever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income
The availability of opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional
I agree; I have about $1m in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, having a portfolio-advisor for investing is genius!
I find your situation fascinating. Would you be willing to offer a trusted advisor you've worked with?
Her name is “Sharon Marissa Wolfe” . Most likely, the internet should have her basic info, you can research if you like
Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
Hello
My self Jagprit singh
As asked utility of "masala bonds"
1. It has made companies either domestic or international easy to borrow money where the interest rate is low.(or from where they can get money in low rates).
2. In one or another way domestic companies management can believe in international markets for money lending .
3. Another key utility for masala bond is that it allows corporates to borrow money with out any pressure as in masala bond the investor has the risk and for a renowned company it becomes easy to raise fund from international market
There is no doubt that you will rise fast at the apex of your career. Because you are a very intelligent, smart, hard worker and your work ethic par excellence keep going nice team
Hi Akshat!
-Masala bonds are issued outside India to make foreign investors to invest on it, through Indian rupees rather than their local currency.
-And also gives them a confidence by providing higher interest rates to the investors.
-The name 'Masala bond' is used by the IFC.
Masala bonds are nothing but the bonds that are issued abroad (e.g London stock exchange being the leader) but have denominations in INR and allows indian issuers to raise funding. It is well regulated by RBI. Akshat’s favourite HDFC was the first company to raise funding through masala bonds back in 2016😀
Utility of Masala bonds is that they are rupee denominated bonds issued by an Indian firm outside of India but the bonds are issued in rupees and the interest and principal are repaid in dollars. Therefore, these bonds could be a game-changer for Indian businesses.
Hi Akshat,
Honestly speaking, I had no idea about masala bond, I thought it might be related to indian spices. But I read about it and I'm clear about the concept now. Thank you for making us do some research by ourselves as well.
What I understood from my reading is that - When we take a loan internationally and issue bond, it is done in foreign denominated bonds(like dollar/Eur/Pounds). But Masala bonds are Rupee Denominated bonds, so that we can cover our exchange rate risk. For example if I take a loan of 100$ which is 7,505.30 INR for now. Now after 2 years if I have to pay back my loan, and by that time if 1$ has become 100INR, Then I will have to pay around 10,000/-. However, In Rupee Denominated bonds, foreigners have to convert their dollars in rupee. So the exchange rate risk is on lenders. And we need to pay only 7,505.30 INR, without thinking about depreciation value of rupee. Please correct me if I'm wrong somewhere.
Feeling great to learn something new by myself.
@vancity vanlife hi
Since loosing my job as an air hostess some months back I decided to try something else, what I have found most profitable so far is Options trading and forex because with these two I make close to $ 20k monthly it's great and I'm still trying out other sources.
Sounds to me like a good source because I have come to understand that nature works in our favour once we seek and become conscious, cheers to you and truly I have heard a lot of podcasts and shows regarding Forex and and it's profitability but then never had a chance to try this will be my first time
@@Thyago2420 Well well, I don't pretend to be a great trader of some sort but I am generating good weekly ROi from it. This is thanks to Mr Benjamin ravies, a pro who happens to be the man behind my success in this
@@Lilyoregon Great, funny thing is I was at an IPO the other day and heard Mr Ravies speak at length on the extensive importance of compounding and how the current global situation affects the market
Okay, so how do I get to communicate with him directly please
Benjamin ravies(a)Gmai
Lcom...Is he taking commissions for trades?
Yes he is
Thank you!
Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency. Masala is an Indian word and it means spices. The term was used by the International Finance Corporation to evoke the culture and cuisine of India.
Hi Akshat,
The one major point which is missed here is that the "credit rating" agencies have not been doing a good job, rating bonds correctly. Senior Citizen investors may get trapped into buying these bonds( with perceived high ratings) in a high debt, risky enterprises with bad debt/equity ratios.
In a super high liquidity, valuations and growth inflated market such as the one we are in, I wish you explicitly explain the risks involved in believing what we see. ( Rating agencies have literally been useless in rating the securities, their incentives are misaligned)
So, please explicitly highlight the risks involved for a senior citizen investor.
Nicely explained sir
Bhaiya here is my answer
Masala Bonds are rupee-denominated bonds issued outside India by Indian entities. They are debt instruments which help to raise money in local currency from foreign investors. Both the government and private entities can issue this bonds. ❤️
Thank you 😊 for this video, do you offer account management or have any recommendations?
Masala bonds are issued outside India, by an Indian entity, in Indian currency.
In case of any risk, the investor has to bear the loss and not the borrower.
The companies issuing these bonds do not have to worry about the depreciation of rupee.
The name “Masala Bonds” was given by the International Finance Corporation (IFC). Since ‘masala’ is a Hindi word for spices, it would stimulate the Indian culture at the international platform.
Thanks for your feedback , I will also advise you get a good life by starting to invest , especially on stock market and crypto currency,I will refer you to my trade analyst and financial guru to assist you and make good profits ...
Masala Bonds were introduced in India in 2014 by International Finance Corporation (IFC). The IFC issued the first masala bonds in India to fund infrastructure projects. Indian entities or companies issue masala bonds outside India to raise money. The issue of these bonds is in Indian currency rather than local currency. Thus, if the rupee rate falls, the investor will bear the loss.
God bless!! Great work indeed, empowering the common man with financial knowledge in an easy to understand way!!
The bonds are issued in rupees, but interest and principal are repaid in dollars. As a result, these bonds could be a game-changer for Indian businesses.
Masala bonds protect the borrower from currency fluctuations because they have no currency risk.
The borrower has the ability to raise a large sum of money.
It assists the Indian organization in diversifying their portfolio by issuing these bonds.
Investors do not need to be concerned about rupee depreciation because the bonds were issued in Indian currency rather than foreign money.
It helps borrowers save money because it is issued outside of India at a cheap interest rate of less than 7%.
It contributes to the country's foreign investment strength by increasing investor confidence in Indian currency.
The video of the thumbnail shows monthly income however the video goes on about how the interest rate we achieve is yearly. This is the second video I am seeing on your channel from which the topic on the video thumbnail is being used to get more views.
Please stay with the content as per written on your video thumbnail.
Masala bonds - are rupee-denominated bonds as a source of debt financing for the public and private sector in India to raise money from foreign investors.
Utility- Reduces currency - GETS HIGHR RATE OF INTEREST
Nicely explained Thanks Akshat
Hi Akshat,
Masala Bonds has assigned a final rating of BB+ this was given by fitch ratings and according to fitch ratings, BB+ is a speculative-grade credit. The major benefit of these bonds is it has a higher rate of returns compared to other bonds. I found an interesting part that borrowers need not worry about rupee depreciation as the issuance of these bonds is in Indian currency rather than foreign currency.
Kudos to your dedication! Your attention to detail at work makes you more unique.
Masala bonds are issued by Indian entities, outside India. These are issued in the local currencies. Benefits for investor are higher interest rates, benefits from rupee appreciation at time of maturity. Benefits of issuer are large audience, cut down in costs and safeguard from any fall in rupee price.
Many people have correctly answered before me but thank you for the question, Akshat. Learned something new today!
Your videos are so much so helpful for retail investors who wanted to make good passive income!!! Thanks!!
masala bonds: it is an Indian word for spices, to stimulate the culture and cuisine of India on the international platform. The first Masala bond was issued in 2014 by IFC for the infrastructure projects in India.
Nice info✌
MASALA BOND ANSWER :- Hello Sir, I am a permanent resident of Andaman & Nicobar Islands. I am your permanent viewer and never miss your videos. Your presentation is very good and also your English pronunciation also very nice and easy to understand. L learned more knowledge from your videos. Sir keep doing good job. Thanks .
Masala Bonds are rupee-denominated bonds. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination.
In 2019, Kerala became the first Indian state to issue Masala Bonds worth Rs. 2,150 crore on the London Stock Exchange. State-owned Kerala Infrastructure Investment Fund Board (KIIFB) had issued the bonds to raise funds in the overseas market.
Thanks for valuable knowledge sir
Honestly one of the best videos on safe investments. Thank you so much!
1. Masala bonds are "Rupee denominated bonds" which were introduced to boost infrastructure development.
2. One can issue bonds worth 50 billion for a maturity period of 3 or 5 years.
For example:
I wanna raise ₹100cr from any foreign country let's say the USA (which will be 14 million USD) and I promise to give ₹110cr with Intrest (which is 15.5 million USD). Here, if the exchange rate of USD to INR fluctuates, let's say it becomes ₹70 to ₹75, then in Masala bond, you don't have to pay the increased price because the price of the bond is already decided by International Finance Corporation which is the broker in World Trade Center. So, here I do not have to pay Rs.116cr ($15.5 million X 75) rather I would pay Rs.110cr ($15.5 million X 70). So, by this system, it creates competition with the Indian bond market. And also saves the company unnecessary expenses.
P.s- Hey Akshat, first of all, a big fan. Hope you like my explanation.
Hemil Shah
nice vid! keep making similar content!
Just read all these concepts in Mrunal sir economy's course .glad to understand everything 🤗
Thank you, Akshat!
Hi Akshat,
Basic Understanding : Masala Bond is a debt instrument by which an Indian Entity can raise money from Foreign Market, in Indian Currency, instead of local currency or dollars.
Utility of Masala Bond:
1. It allows an Indian company to diversify its funding sources and reduce its borrowing costs by taking advantage of low interest rate in the overseas market as compared to India
2. They also allow an Indian company to tap into global liquidity without incurring currency risk. Since these are rupee-denominated and are ultimately settled in a foreign currency, the currency risk falls on the overseas investor.
3. It helps in building up repo/value/name of INR in International Market, by making it familiar to International Investors.
4. It will also boost the development of domestic bond markets due to competition with overseas market.
Thanks for making your videos interesting by asking these research needed questions.
By the way, where's the Book Club now?
😎✌️
Utility of masala bonds:
For foreigner investors: Earning higher fixed returns in INR bonds as compared to fixed returns from dollar or pound denominated bonds
For Indian companies/Govts: Getting access to INR capital at low cost as compared to raising from India itself
The entire utility of Masala bonds arising due to the interest rate differential between countries
Thanks in advance Akshat Sir
Hi Akshat, Thanks for sharing 'Golden Pi'
Thank you for your best explanation and suggestions on bonds
Masala bonds are bonds issued outside India but denominated in Indian Rupees, rather than the local currency.
Utility of Masala Bonds:
- Offers high interest rates
- Helps in building up foreign investors’ confidence in Indian Economy and thus increases foreign investment in India
- Advantage to borrower is that they don’t have to bear currency risk and need not worry about rupee depreciation.
- Capital gains on these bonds are tax exempted.
Masala bonds are bonds issued by Indian businesses out of India. However, these bonds are issued in Indian currency as against the local currency of the country in which it is offered. To raise funds from overseas investors, Indian companies issue masala bonds outside of India.
Adesh Dhadiwal
Very helpful. Thank you
The utility of masala bonds is that the proceeds would be used to support local currency lending and investment in India
Hi Akshat sir ! So, Indian entities or companies issue masala bonds outside India to raise money.
The benefits for the investors are:
1) It offers higher interest rates and thus benefits the investor.
2) It helps in building up foreign investors’ confidence in the Indian economy.
3) It helps strengthen the foreign investments in the country as it facilitates foreign investors’ confidence in Indian currency.
4) The capital gains arising from rupee denomination are exempted from tax.
5) If the rupee appreciates at the time of maturity, it benefits the investor.
The benefits for the borrowers are:
1) It benefits the borrower as there is no currency risk. It saves the borrower from currency fluctuations.
2) Borrowers need not worry about rupee depreciation as the issuance of these bonds is in Indian currency rather than foreign currency.
3) The borrower can mobilise a huge amount of funds.
4) It helps the Indian entity issuing these bonds to diversify their portfolio.
5) It aids borrowers to cut down their cost as they are issued outside India usually below 7% interest rate.
6) As these bonds issuing are in the offshore market, it helps borrowers to tap a large number of investors.
Masala Bonds are rupee-denominated bonds issued outside India by Indian entities. They are debt instruments which help to raise money in local currency from foreign investors. Both the government and private entities can issue these bonds
Sir , very educative ...interesting ...
Hey Akshat that is a very informative video. But you didn't mentioned about the quarterly, monthly or yearly based returns from the bond. I would be happy if you make a video on that.
Masala bond is a bond issued by IFC in 2014 for empowering the issuer with respect to foreign investments as the bond is issued in a Indian ruppess rather than foreign currencies like dollars so that it will make it safer for Indian borrowers to pay them off without worrying about currency exchange rates at the time of bond maturity.
Thanks for your feedback , I will also advise you get a good life by starting to invest , especially on stock market and crypto currency,I will refer you to my trade analyst and financial guru to assist you and make good profits ...
Masala bonds are rupee denominated bonds raised from oversees markets in Indian rupees. This debt instrument was first started by The World Bank in 2014 in India to fund an infrastructure project. Recently, Kerala became the first state in India to have started Masala bonds through London Stock Exchange to fund it's infrastructure project. The money raised through these bonds can only be invested in developing integrated townships or affordable housing.
Nice lecture and useful information like it for bonds
Utility of Masala Bonds: 1. less documentation
2. lower tax
3. operational convenience
The name Masala bond was given by the International financial corporation IFC, Masala means spices in hindi. It would stimulate Indian culture in international platform.
Masala bonds are debt instruments issued by Indian entity, outside India, in Indian currency.
They are rupee dominated bonds. Meaning funds will be raised from overseas market in Indian rupees.
Mainly used for infrastructure development and estate planning.
Maturity period depends on amount of money raised in a single financial year.
If amount raised by bond is upto rupee equal to USD 50 million then maturity period is 3yrs and if amount raised in 1 financial year is rupee equivalent to more than USD 50 million then the maturity period is 5 yrs
In case of any risk , it is born by investor and not the borrower.
Main benefit is that capital gains from rupees appreciation are exempted from tax.
Masala Bonds is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local currency
Example :- Kerala issue Masala Bonds on the London Stock Exchange. But instead taking money in pound they take in Indian rupees.
It's help to dominate INR in global and internationalise Indian rupee by making it familiar to the International investors market.
companies issuing these bonds do not have to worry about the depreciation of rupee.
It's also need less paper as the registration does not have to be made as FPI in India
Masala bonds started in 2014 by IFC to raise infrastructural funds from domestic as well as foreign clients. Traded in INR only
Masala bonds are having investment in various equities such as government bonds, equities, shares etc.
Introduced in 2014, Masala bonds are bonds where investors outside India can participate to fund infrastructure projects of Indian entities or companies.
These are issued in Indian currency hence the rupee rate should be strong in order for the investor make money or he/she may bear a loss if it weakens.
It offers very high interest rates which in turn increases the foreign investor's confidence in the Indian economy and moreover the capital gains from this rupee denomination are exempted from tax.
My viewpoint about utility of Masala bonds:
1. Masala bonds have opened up an investment route for global investors who have no access to the domestic market through the Foreign Institutional Investor (FII).
2. The documentation work is also less as the registration does not have to be made as FPI in India
3. For borrowers, it is beneficial as the cost of funds is cheaper and is issued below 7% interest rate
4. The companies issuing these bonds do not have to worry about the depreciation of rupee
Since, the interest rates in the US dollar, pound sterling, euro, and yen, are at very low levels, it benefits Indian companies to raise funds via issuing Masala Bonds
5. It is an easy medium to internationalise Indian rupee by making it familiar to the International investors
6. It will also boost the development of domestic bond markets due to competition with overseas market
This is really the best video I saw. Much informative for every investor. keep it up! ❤❤❤❤
Masala bonds are the bonds issued outside India by an Indian entity in INR.
The major objectives of Masala Bonds are to fund infrastructure projects, ignite internal growth (via borrowings) and internationalise the Indian rupee
In case of any risk, the investor has to bear the loss and not the borrower.
Masala bond is the bbond issued by Indian entities or company issue masalabond outside India to raise money in indian currency
Generally, Masala bonds have higher interest rates and the investors can also get benefitted due to rupee appreciation as the capital gains due to this is tax exempted (Finance Act, 2016).
Masala bonds are suggested gives higher interest rates and retail investors gets tax exemption benefit. Guided its should be rated minimum A- and more returns upto 13% than FDs, stock market or real estate. Bond market volume in india is low due to penetration than US and europe.. therefore it is safer innvestment
Hi Akshat , great explanation 🎉
plz also tell us is entry n exit in bonds tax free by any chance or would it attract tax just like fd ?
Hi Akshat! Great video, would love to see a detailed video on bonds and some some explanation on concepts like YTM..looking forward
Masala Bonds: Rupee-denominated bonds issued outside India by Indian entities.
Masala bond :-
*Attracts Foreign investment primarily.
*Takes benefits of currency depreciation
*Can be issued by both Government and private institutes.
*Dollar bond → Borrower takes the risk.
Masala bond → Investor takes the risk.
P.S. Really enjoyed learning in this community over the past few months, made some wise decisions.
Keep up the consistent Quality content 👍🏻
Hay Akshat, Masala bond are debt instruments which help to raise money in local currency from foreign investors. For example NTPC issued 2000cr masala bond on 2017
Q1
Kerala government has also did the same, during mr thomas issac tenure.
Ya bro Q1 Apr 2017
Masala bonds are bonds you inherent or buy when you get the chat kara from eating masala. While your source of chatkara might vary, the growth and the volatility depends on MDH uncle.
masala bonds are debt instruments which basically help to raise money in local currency from foreign investors
Hi Akshay,
Masala Bonds are rupee-denominated bonds. It is a debt instrument issued by an Indian entity in foreign markets to raise money, in Indian currency, instead of dollars or local denomination.
In 2019, Kerala became the first Indian state to issue Masala Bonds worth Rs. 2,150 crore on the London Stock Exchange. State-owned Kerala Infrastructure Investment Fund Board (KIIFB) had issued the bonds to raise funds in the overseas market.
NAKKU 🤧🤧
Masala Bond - Mixtures of many bonds; mixture of with, without and moderate risk bonds