Speaker Announcement

Mahendra Kumar Jajoo – Decoding the Indian Debt Market

Mahendra Kumar Jajoo is the Head of Fixed Income of Mirae Asset Investment Managers (India) Pvt Ltd. Jajoo has an experience of over two decades in the field of financial services, including 12 years of experience in Fixed Income funds management. He is responsible for supervising all debt schemes of Mirae Asset Investment Managers (India) Pvt Ltd.

Mahendra Kumar Jajoo was associated with AUM Capital Markets Ltd as the Director, and was also associated with organizations like Pramerica Asset Managers Pvt. Ltd., Tata Asset Management Ltd., ABN AMRO Asset Management Ltd and ICICI Group.

Jajoo on inflation and current market scenario

Mahendra Kumar Jajoo studies the current market scenario and notes that though the inflation has not gone up as anticipated in the market, it overall remains on the higher side. Jajoo feels that the sentiments of traders controlled the fall of prices. The market was expecting a bigger number and the figures in June’20 was also quite high.

Jajoo’s tips and parameter suggestions on debt funds

Jajoo puts it under a four-factor matrix, with the first two variables as long-term vs short term, and the other two being low risk vs high risk. Risk on debt funds depends on two primary factors – namely interest rate risk and credit risk. It is suggested that the investor must put the duration risk vs the credit risk before choosing the debt fund.

Jajoo adds that when you are lending money to someone, the most important thing to note is that you get the money back on time or else all your return calculations would be invalidated. So, Jajoo suggests avoiding aggressive credit risk because the longer your investment horizon is, the higher the uncertainty of how things will evolve. The best way to avoid uncertainty and losses is by lowering your credit risk.

Talking about interest rate risk, Jajoo says that if you have a longer investment horizon, interest rates would go up and down, and after one complete cycle, you would get a good investment experience.

To sum it up, Jajoo suggests that if you have long-term money, invest in a high-quality bond fund or a long-duration fund where you can gain as per the market volatility of interest rates rather than being adversely affected. If you have a short-term investment, then it is suggested to look for a fund with lesser volatility potential.

Jajoo asks every investor to follow these tips to avoid worrying about the several types of debt funds in the market.

Jajoo on how to figure out the risk factor

Jajoo hints at the risk-o-meter, the latest strategy to find out the anticipated risk of funds. Risk-o-meter comprises three variables – liquidity risk, interest rate risk, and credit risk. Even at certain differences, risk-o-meter will find out the scoring for any investment under these parameters and hence the scores will be close to being accurate.

Jajoo summarizes it as if you have a longer investment horizon, then you should look for a high duration fund that generates higher returns over a period of time. If you are a short-term investor, it is better to invest your money in safe funds like liquid funds or anywhere with low volatility. Jajoo, as a leader of the debt market, warns everyone not to take aggressive credit risk as that’s one thing that can go terribly wrong in your investment and debt plans.

Mahendra Kumar Jajoo at Bull Run Summit

Mahendra Kumar Jajoo joins us at Bull Run Summit 2021 from 23rd to 25th July 2021. He would decode debt investing and talk about the debt market in India. If you want to know what to avoid and how to proceed in the Indian debt market, it’s your ultimate opportunity to learn from the guru of the debt market.

Register at https://www.bullrunsummit.com/, be a part of Bull Run Summit, and walk the smooth path to investing.


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