You are here:

Bonds/stock markets in india

Advertisement


Question
1. Difference between shares and debentures?Which are safer to invest in and why?
2. The Indian Stock Market was booming till the end of last year and now has suddenly registered a massive fall. Why?Is the change permanent?What can be the remedial measures?
3. Which are currently the best Indian companies to invest in?

Answer
Debentures (bonds) are usually much safer because they have guaranteed payments of principal and interest that are secured by some sort of collateral or taxing ability.
Stocks are much more speculative and often a fall occurs after they are just bid up too high.  Investors get scared out and buys bonds instead.
I'm sorry for the late answer as I was out of the country.  Also, I cover bonds and don't know much about the stock market in India.
Usually, markets make major bottoms about every 4 years and recover over time.

Bonds

All Answers


Ask Experts

Volunteer


Doug Ingram

Expertise

Fixed income portfolio allocation and strategies for institutional investors. Having designed multi-scenario risk quantification and cash flow projection models for nearly 25 years, Strategic Technical Initiatives can answer your regulatory, SFAS 115 allocation, securities selection, and other questions dealing with yield curve placement and portfolio mix strategies. I write the Bond Market Review on behalf of Commerce Street Capital Management.

Experience

Trading and designing portfolio strategies since 1980.

Education/Credentials
Physics and Differential Mathematics

©2012 About.com, a part of The New York Times Company. All rights reserved.