Very recently (since couple of
months back) when Gold was plummeting, it signaled the rise of its competitor Dollar.
All global economies maintain their financial reserves in these two asset class
i.e. American Treasury Bills and Gold. Composition changes with changing
economic scenario.
Since last week when the news
started unfolding regarding recovery of the American economy & that they
are considering to reduce the stimulus flared Dollar against all currencies
worldwide (intensively against currencies of emerging market including India.)
Interesting point is where it
settles. Current Account Deficit is still a major concern for our country. The
improvisation on same is main economic challenges which are huge on account of
rising Crude prices & gold imports. In order to improvise same govt. is
planning to raise Dollar deposit thru NRI Bonds, which shall be in news within
a month’s time. It should be a good opportunity to all our NRI friends to
invest in same at very lucrative rates.
Investor back home will also be
oblized with Inflation adjusted Bonds (new kind of product) which shall be
ensuring your return over & above the governing inflation rate.
Further, we re-iterate that Bank
FD should be replaced with equally safe & secured Debt Funds which are
providing around 9% tax free returns.
