Hi @aadi_007 liquidity is an issue. For me I will hardly sell as it funds my monthly expenses. If bond prices rise drastically then I might look to sell, I can sell in small tranches for many days.
Bond MF provide good liquidity however post management expenses we hardly get 7%. My bond portfolio is designed at 10%. Bid-ask spread is very high ranging from 25 to 75bps. So if I want to sell in hurry then i might have to sell at discount of 3 to 5 rupees on 100 rs par bond. In many cases there is no liquidtity so may end up holding till maturity. So I have staggered my maturity from 1 to 17 years. I am hoping as country grows bond market deepens.
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