This is the archive of all our articles related to debt mutual funds
A subscriber to our YouTube channel writes, “Do we have any debt fund like benchmark Nifty 50 Index fund for 7-10 years period. I just want to follow only one fund. Of course, the major chunk is EPF, PPF, and ESOP. This is to build slowly in debt space for a future 25% allocation”. “I…
Continue reading →A reader asks, “I have been reading a bit on Target Maturity Funds and wanted to know if these can be used like a recurring deposit. Example: Let’s say I wish to buy a house in 2031. I want to create a substantial amount for the down payment”. “I intend to build the corpus through…
Continue reading →Several readers have asked us how their investment strategy should change due to the change in debt mutual fund taxation rule applicable from 1st April 2023 on fresh purchases. This is our topic coverage with all the details: Debt mutual funds to be taxed as per slab from 1st April 2023! And Will SEBI help investors…
Continue reading →In this article, we explain why investors and AMCs need SEBI’s help in tackling the debt fund taxation rule to come into force from 1st April 2023. Taxation status from 1st April 2023 Funds holding 65% or more of Indian equity or Indian equity ETFs are equity funds (no change in this) Funds holdings less…
Continue reading →In a surprising move, the govt announced several amendments to the finance bill 2023. Among the changes is the change in taxation status for debt mutual funds. Taxation status from 1st April 2023 Funds holding 65% or more of Indian equity or Indian equity ETFs are equity funds (no change in this) Funds holdings less…
Continue reading →There are two types of debt-based passive funds in India. (1) Target Maturity Funds, which would buy and hold an index portfolio and hold it until maturity, thereby reducing interest rate risk at the time of withdrawal. The credit risk in funds is also relatively low as they typically invest in gilts and state development…
Continue reading →It is quite easy to see extreme reactions to many aspects of personal money management. Yield-chasing or seeking to invest in high-interest rate fixed income products is no different. Many investors vehemently believe that there is no place for risk in a portfolio. “We have enough risk from equity, so why take on more risk…
Continue reading →A reader asks, “Which among the following two has higher credit risk? 1. Gilt fund (actively managed) or 2. FD in a nationalized bank? I need to choose one for a 10-year goal for the debt portion”. On the face of it, this might look like a trivial question to at least experienced investors. However,…
Continue reading →A reader asks, “You usually recommend money market funds for short-term goals. Can we also consider Ultra Short Duration Funds for this purpose?’ The definition of money market funds is simple: “Investment in Money Market instruments having maturity up to 1 year”.Ultra-short duration funds are defined as “investment in Debt & Money Market instruments such…
Continue reading →This article lists the essentials an investor needs to keep in mind before selecting debt mutual funds. (1) Debt mutual funds are not replacements for fixed deposits! Do not take product manufacturers (AMC guys) and sales guys seriously! A fixed deposit in a bank too big to fail has a risk so small that it…
Continue reading →A reader asks, “Sir, a friend recommended ICICI Prudential Short Term Fund is a suitable choice for my need which is three years away. The AMC website says the fund can be used for durations above six months. Can you please let me know if this is true and if I can proceed with the…
Continue reading →UTI Gilt Fund with 10-year Constant Duration is an open-ended debt scheme that invests predominantly in government securities issued by central and state governments. The weighted average portfolio maturity will be maintained at around ten years. A reader wants to know if this is the right time to buy such a product. Also, The fund…
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