The Reserve Bank of India (RBI) cancelled a ₹5,000 crore green bond auction for the 30-year paper, despite receiving bids exceeding ₹10,943 crore. This cancellation, the second this year, is attributed to bids with yields higher than the RBI’s comfort level. Geopolitical tensions and a weakening rupee contributed to the increased pressure on bond yields, influencing investor expectations.
What makes passive funds a smart choice for long-term investors?
Fund houses are increasingly launching passive funds, including ETFs and index funds, which replicate market indices for low-cost, diversified exposure. These funds are gaining traction