Safe haven investment and safe haven Currency

Safe Haven Assets

People want to invest wisely and desire that their assets shall not depreciate due to inflation or due to any economic turmoil. Investment in real estate is localized and always under the scanner of government scrutiny, therefore investors rush for a safe-haven investment.

Decline global economy is attracting investment in gold as a safe haven. 

Example of Safe Haven investment

  1. Gold: For years, gold has been considered a store of value.
  2. Treasury bills (T-bills): Due to government guarantee it s considered as safe with assured return, untouched by inflation.
  3. Defensive stocks: Utility stock such as food, healthcare, and diversified consumer goods, which have always demand in the market.
  4. Cash in hand: It is always good to keep good amount of cash in hand. It shall always pay at the time of trouble without depending on the Bank or return of dividends.

 “The Swiss franc[CHF] is considered a safe-haven currency.” 

Switzerland was previously a Tax haven with its robust Banking system, tax evaders may stash their wealth secretly in Swiss Bank and therefore Swiss frank always had an upward pressure comparing to the other currencies. Therefore, converting one national currency to Swiss frank is to be considered safe in terms of value. On the other hand in a market system where the market is volatile itself due to political or other factors, something in the morning and something in the evening, people never put trust in their own national currency, rush to convert it in Swiss frank or any other stable currencies for saving the value.

Japanese yen, another safe haven, was the only Asian currency to appreciate during the Great Recession, impacting the global economy and altering the balance of power in global FX markets. [https://voxeu.org/article/why-was-japan-s-trade-hit-so-much-harder]

Therefore, three major safe-haven currencies are the U.S. dollar and U.S. Treasuries; the Japanese yen and Japan’s government bonds; and the Swiss franc and Swiss government bonds.

As exemplified above Gold is the Safe-haven asset. At the time of the declining economy, the gold glitters more. Gold lost its charm the moment the economy recovers.

Bitcoin recently joined the ranks of safe-haven assets [https://www.forbes.com/sites/panosmourdoukoutas/2019/08/08/bitcoin-joins-the-ranks-of-safe-haven-assets/]

The trade war between the U.S. and China of this summer stipulated a global synchronized slowdown which is wreaking havoc on emerging market countries such as India. People of India love to invest in Gold rather than in any volatile market. Indian market is considerably stable due to political stability under a Modi government. Investors have confidence that even in the 2022 election the same dispensation shall function, so there shall not be any major shift in policy.


TUESDAY, OCTOBER 15TH, 2019

Indian Market

Historical Data

2019 October 27TH

BSE SENSEX 39,250.20  192.14 (0.49%) SAMVAT 2076

CompanyLTP%CHANGEVOLUMEBUY PRICESELL PRICEBUY QTYSELL QTY
Asian Paints1,793.95-0.1760911790.001793.9560.005.00
Axis Bank710.300.3241242710.30710.0013.002.00
Bajaj Auto3,139.350.1821443134.003155.005.0010.00
Bajaj Finance3,981.00-0.12132963981.003981.0015.0012.00
Bharti Airtel373.40-0.6445380373.30374.0050.004.00
Coal India203.15-1.2987008202.95203.4545.0010.00
HCL Tech1,130.55-0.30116521125.001130.553.00103.00
HDFC2,105.050.10146542105.052112.008.0021.00
HDFC Bank1,238.000.76512931238.001238.003.0035.00
Hero Motocorp2,672.000.6219322656.002690.0025.002.00
HUL2,139.50-0.16106492139.502139.5032.0010.00
ICICI Bank469.400.06427741469.40469.403.002.00
IndusInd Bank1,274.700.24109431274.001276.6516.00115.00
Infosys648.951.79248244649.00650.356.005.00
ITC250.501.07223197250.50250.80904.002824.00
Kotak Mahindra1,593.250.34107621593.251593.2559.0034.00
Larsen1,434.650.70383231434.651434.655.001.00
M&M591.252.2671107588.00591.2510.0073.00
Maruti Suzuki7,411.05-0.7883047405.007412.006.001.00
NTPC118.850.2119487118.55118.85125.005.00
ONGC139.650.1433617139.95140.8011.00300.00
Power Grid Corp202.45-0.308186202.20202.45200.00184.00
Reliance1,434.100.24750331434.101434.1016.0077.00
SBI282.050.16592108281.05281.45400.0066.00
Sun Pharma417.550.1233490417.55417.559.005.00
Tata Motors147.9516.541959921149.40149.6036192.002.00
Tata Steel365.101.0169164365.25365.1036.001655.00
TCS2,116.60-0.40136962116.602118.0011.0019.00
Vedanta145.152.18219033145.10145.20647.0082.00
Yes Bank54.754.99429752954.7554.751154.0096.00

💡 CURRENCY EXCHANGE RATE [26.08.2019]

Currency  Rupee US $ Euro € UK £ Aus $ Japanese ¥ Singapore $ Renminbi Taiwan $
1 Rupee  = 1 0.0139 0.0124 0.0113 0.0206 1.4578 0.0193 0.0990 0.4362
1 US $ = 72.1625 1 0.8969 0.8144 1.4843 105.2000 1.3892 7.1472 31.4750
1 Euro € = 80.4577 1.1150 1 0.9080 1.6550 117.2929 1.5489 7.9688 35.0931
1 UK £ = 88.6082 1.2279 1.1013 1 1.8226 129.1749 1.7058 8.7760 38.6481
1 Aus $ = 48.6159 0.6737 0.6042 0.5487 1 70.8732 0.9359 4.8151 21.2047
1 Japanese ¥ = 0.6860 0.0095 0.0085 0.0077 0.0141 1 0.0132 0.0679 0.2992
1 Singapore $= 51.9454 0.7198 0.6456 0.5862 1.0685 75.7270 1 5.1448 22.6569
1 Renminbi = 10.0966 0.1399 0.1255 0.1139 0.2077 14.7191 0.1944 1 4.4038
1 Taiwan $ = 2.2927 0.0318 0.0285 0.0259 0.0472 3.3423 0.0441 0.2271 1

💡Indian Market [26.08.2019] 

NIFTY 50
10970.75
 
BSE SENSEX
37214.60
CRUDEOIL
3893.00
SILVER
45226.00
GOLD
39134.00
DAX
11611.51
FTSE

7094.98

CAC
5326.87
Dollar-Rupee
72.0400
Forward Rate
30.08. 19 74.8925

Indian Economy and Market [Current Status]

FRIDAY, APRIL 19TH, 2019
Policy Repo Rate : 6.00%
Reverse Repo Rate : 5.75%
Marginal Standing Facility Rate : 6.25%
Bank Rate : 6.25%
CRR : 4%
SLR : 19.00%
Base Rate : 8.95% – 9.40%
MCLR (Overnight) : 8.05% – 8.50%
Savings Deposit Rate : 3.50% – 4.00%
Term Deposit Rate > 1 Year : 6.25% – 7.50%
Money Market
Call Rates : -% *
* as on previous day
Government Securities Market
7.17% GS 2028 :7.5621%
91 day T-bills : 6.3149%*
182 day T-bills : 6.4159%*
364 day T-bills : 6.4459%*
* cut-off at the last auction
Capital Market
S&P BSE Sensex : 39275.64 *
Nifty 50 : 11787.15 *
* as on previous day

Source : RBI

Mutual Fund Basics

Misconduct by a Professional Person

Objectives of a mutual fund are –

Fund Objective What the fund will invest in
Equity (Growth) Only in stocks
Debt (Income) Only in fixed-income securities
Money Market (including Gilt) In short-term money market instruments (including government securities)
Balanced Partly in stocks and partly in fixed-income securities, in order to maintain a ‘balance’ in returns and risk

  • Alternative Investment Funds (AIFs)
  • Bankers to an Issue
  • Collective Investment Schemes (C.I.S)
  • Commodity Derivatives
  • Corp. Debt Market
  • Credit Rating Agencies
  • Debenture Trustees
  • Depository Participants
  • Derivatives
  • Foreign Portfolio Investors (FPI)
  • International Affairs
  • Investigation
  • Listing Regulations
  • Investment Advisers
  • Investor Survey
  • Issues And Listing
  • Merchant Bankers
  • Mutual Fund
  • Portfolio Managers
  • Prosecution
  • Infrastructure Investment Trusts (InvITs)
  • Registrars to an Issue and Share Transfer Agents
  • Research Analysts
  • Stock Brokers
  • Takeover
  • Real Estate Investment Trusts (REITs)
  • Trading, etc
  • Underwriters
  • Venture Capital

Entities

  1. Security Appellate tribunal
  2. Intermediaries
  3. Clearing Corporations
  4. Depositories
  5. Stock Exchange

Funds : 2019

Large Cap Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Axis Bluechip Fund – D (G)
4
1027.03 8.83% 12.87% 12.41%
Axis Bluechip Fund (G)
4
4417.53 7.47% 11.36% 11.02%
BNP Paribas Large Cap Fund – D (G)
3
66.34 6.77% 7.18% 8.29%
CR Bluechip Equity Fund – D (G)
4
18.08 -0.51% 6.73% 8.79%
Edelweiss Large Cap – Direct (G)
4
22.14 -0.97% 6.14% 8.15%
Multi Cap Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Reliance Capital Builder-II-Sr-B DP(G)
NA
4.7 8.87% 12.48% 12.05%
Reliance Capital Builder-II-Sr-B (G)
NA
25.02 7.73% 11.07% 10.61%
Reliance Close-End Eqty-2-Sr-A-DP-G
NA
5.32 11.43% 8.91% 10.11%
Reliance Close-End Eqty-2-Sr-A (G)
NA
232.55 11.39% 8.64% 9.44%
Axis MCF – DP (G)
NA
173.72 8.17% 7.75% 7.75%
Large & Mid Cap Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Invesco Growth Opportunities – D (G)
5
294.98 -2.09% 6.36% 9.77%
Mirae Emerging Bluechip -Direct (G)
5
1614.28 -0.16% 6.28% 12.58%
Mirae Emerging Bluechip Fund (G)
5
5776.91 -1.21% 5.35% 11.61%
Tata Large & Mid Cap Fund – D (G)
3
92.36 2.19% 5.05% 7.88%
Invesco Growth Opportunities Fund (G)
5
1067.75 -3.26% 4.82% 8.06%
Mid Cap Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Axis Mid Cap Fund – Direct (G)
5
467.57 -1.39% 7.74% 9.52%
Axis Mid Cap Fund (G)
5
1931.19 -2.64% 6.45% 8.24%
Tata Mid Cap Growth – Direct (G)
3
43.11 -5.27% 0.72% 5.53%
Invesco India Midcap – D (G)
5
55.27 -12.07% 0.57% 6.38%
Tata Mid Cap Growth Fund (G)
3
630.13 -6.6% -0.36% 4.52%
Small Cap Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Axis Small Cap Fund – Direct (G)
NA
67.94 9.74% 7.24% 10.08%
Axis Small Cap Fund (G)
NA
301.69 8.52% 6.05% 8.85%
Sundaram Select Micro Cap-Sr 3-DP-G
NA
4.52 -8.59% 4.18% 10.27%
Sundaram Select Micro Cap-Sr 3-RP-G
NA
52.61 -8.9% 3.8% 9.73%
Sundaram Select Micro Cap-Sr 4-DP-G
NA
3.09 -10.47% 2.89% 9.41%
Dividend Yield Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
UTI Dividend Yield Fund -Direct (G)
NA
73.7 -6.95% 2.5% 5.93%
UTI Dividend Yield Fund (G)
NA
2411.52 -7.53% 1.82% 5.24%
Principal Dividend Yield-Direct (G)
NA
2.57 -12.53% 1.03% 6.66%
Principal Dividend Yield (G)
NA
204.87 -13.18% 0.38% 6.07%
ICICI Pru Dividend Yield Equity – D (G)
2
15.8 -15.02% -4.3% 2.87%

Debt Funds

Long Duration Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Reliance Nivesh Lakshya Fund – DP (G)
NA
371.47 24.31% 23.33% 23.33%
Reliance Nivesh Lakshya Fund – RP (G)
NA
108.31 23.92% 22.94% 22.94%
Reliance Nivesh Lakshya Fund – DP (AD)
NA
0.41 17.93% 17.39% 17.39%
Reliance Nivesh Lakshya Fund – RP (AD)
NA
0.32 17.88% 17.33% 17.33%
Reliance Nivesh Lakshya Fund – RP (MD)
NA
0.96 13.47% 13.22% 13.22%
Medium to Long Duration Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Reliance Income Fund – Direct (G)
5
58.74 18.2% 10.02% 9.48%
CR Income Fund – D (G)
3
17.02 16.13% 9.26% 8.99%
Reliance Income Fund (G)
5
170.29 17.33% 9.18% 8.6%
ABSL Income Fund – D (G)
3
236.9 15.93% 8.92% 8.81%
Kotak Bond – Plan A – Direct Plan (G)
3
610.17 16.15% 8.75% 8.51%
Medium Duration Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
SBI Magnum Medium Duration Fund – D (G)
3
478.9 12.82% 9.31% 9.83%
Indiabulls Income Fund – Direct (G)
NA
57.76 11.07% 9.18% 8.91%
IDFC Bond Fund – MTP – D (G)
5
659.08 12.9% 8.75% 8.59%
Indiabulls Income Fund (G)
NA
2.4 10.49% 8.61% 8.24%
SBI Magnum Medium Duration Fund (G)
3
1188.82 12.45% 8.59% 8.95%
Dynamic Bond Fund» Crisil Rank AUM (Cr) 1 Y 3 Y 5 Y
Mirae Asset DBF – Direct (G)
NA
11.87 17.72% 11.07% 11.07%
Kotak Dynamic Bond Fund – D (G)
4
248.25 15.02% 10.09% 9.99%
PGIM India Dynamic Bond Fund-DP (G)
5
11.84 15.78% 10.07% 10.02%
SBI Dynamic Bond Fund – Direct (G)
5
186.75 17.99% 10.02% 9.86%
IDFC Dynamic Bond – Direct (G)
4
694.54 17.5% 9.93% 9.61%