Fixed Income Investing

Fixed Income Investing


Venue

Association of International Wealth Management of India (AIWMI)

Level 9, Platina Block G,
Plot C-59, Bandra-Kurla Complex
Mumbai-400051


Agenda

Day 1
Session Timing Module Coverage
9.30 am – 9.45 am Introduction of Participants Setting the Context of the session
9.45 am – 10.15 am
Concepts:

YTM
Price and Yield
Modified Duration
Clean price, Dirty price
Riding the yield curve

10.15 am – 11.00 Computation

XIRR, Money Market principle
Comparison of various bonds available in the market / prioritizing

11.00 am – 11.30 am Instruments

Types of bonds: Fixed, Floating, Step-up/ down, Put-Call, Zero Coupon, Tax-frees, Perpetual, Basel III AT1 perpetual bonds
Money market instruments
CBLO (TREPS)
How deals take place in the bond market

11.30 am – 11.45 am TEA– BREAK
11.45 am – 12.00 pm
Bond Market in India:

Market participants
Ownership pattern
Primary, secondary
Tracking the market

12.00 pm – 1.00 pm Credit Rating:

Credit Rating
Rating agencies
Long term, Short term rating
Long term-short term rating mapping
Rating default history
Rating stability history
Upgrade-downgrade ratio

1.00 pm – 1.45 pm
LUNCH– BREAK
 1.45 pm – 3.00 pm Debt Mutual Fund Functioning:

Fund NAV computation
Concept of accrual in fixed income funds
Mark-to-Market
Loss from MTM and recoupment through accrual
Relevance of duration

 3.00 pm – 3.30 pm Fund Management Strategies:

Long bond strategy in a portfolio on a bullish view on interest rates
Short bond strategy in a portfolio on a bearish view on interest rates
Concept of Barbell / bunching of maturity
Risk management of MF portfolio
Managing redemptions
Strategy on credit risk management

 3.30 pm – 3.45 pm TEA– BREAK
 3.45 pm – 4.30 pm Participation through Mutual Funds:
 
Advantages of the Mutual Fund route over direct bond portfolio
 – Accessibility
 – Liquidity
 – Ticket Size
 – Tax Efficiency in growth option over 3 years
 – Option of multiple funds
 – Advantages of bonds
 – Cost saving
 – Maturity laddering
4.30 pm – 5.30 pm Recap of the day and excel based calculations
  End of Day 1
  Day 2
9.30 am – 10.30 am Categories of funds

 – 16 debt fund categories

10.30 am – 11.00 am
Direct v/s regular

 – Savings
 – Costs – opportunity cost of inputs missed, time spent
 – DIY and RIA

11.00 am – 11.45 am TEA – BREAK
11.45 am – 12.45 pm Key SEBI Rules for MFs:

Exposure / diversification norms
Side pocketing
No stopping of redemptions

12.45 pm – 1.30 pm Mitigating MTM risk:

Managing MTM risk through HTM / laddering
FMPs
Passive management – open ended
HTM bonds
Active MF portfolio management

1.30 pm – 2.15 pm LUNCH – BREAK
2.15 pm – 3.15 pm Parameters to consider for Fund selection:

Allocation
Due diligence
Hygiene factors
Performance
 – Point to point
 – Rolling of various periods
 – Year-wise
 – Market-phase wise

Fund philosophy and positioning
  Surplus available – horizon
  Matching with Appropriate Fund Category
  Exit Load

3.15 pm – 3.30 pm Investor’s Exposure Norms to AMC / Fund:

Fund AUM % – exposure to that Fund
AMC AUM % – exposure to the AMC
Exposure to Credits – less than AAA instruments
% of my credit exposure to AMC credit exposure
Positive points for high diversification and internal limits

3.30 pm – 3.45 pm TEA – BREAK
3.45 pm – 4.15 pm Tracking Funds:

Performance
Fund positioning / strategy
Any significant change in market / market view
Any significant change in portfolio

4.15 pm – 5.00 pm Taxation:
 
Rules: bonds, debt funds
Generating efficiencies
5.00 pm – 5.30 pm Summary and Recap

 

Faculty

Joydeep Sen

Trainer, Author, Columnist, Academician


Fee

AIWMI Members-  Rs. 5000

Non-members – Rs. 10000

*Fees is Exclusive of GST

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Disclaimer: The Association of International Wealth Management of India (AIWMI) is an independent entity/brand and has no relation, whatsoever, with AIWMI